00:00So we've spent time talking with my co-anchor, Annabelle, who's in the studio, a lot about the concerns out there, right?
00:06Everything from inflation in some parts of the world, markets doing well, not in others, there's trade, we don't know where we're going to end with that.
00:14So what seems to be the top two issues right now that seem to stand out from your clients?
00:19I think right now the geopolitical conflict and also the trade war definitely are the hot topic among all the participants in this forum,
00:29as well as among our family offices.
00:32And if I may share a few takeaway from yesterday's panel discussion, we have multiple panel discussion on the topic itself.
00:40I think number one is uncertainty is the new norm.
00:45Especially, you know, the whole set of disorganized kind of trade negotiations.
00:51Well, we don't know how the terror protection will extend.
00:55So that's point number one.
00:56I think the second takeaway I have from the different panel discussion is, actually, the data is quite strong still.
01:04So that's the reason why the kind of higher inflation, slowing kind of economic growth is not as bad as we thought, according to all the speakers.
01:15But obviously, I will still say we need to brace for the second half kind of data, right?
01:20And if you look at NVIDIA, still have a rosy forecast for the second half.
01:25Yes.
01:26Very interesting.
01:26Yeah.
01:27That's very interesting.
01:28And then the third one is also renewable, revive kind of interest in Asia and also in China, particularly.
01:40Okay.
01:40How would you describe risk appetite?
01:43I mean, the fact that we have 3,500 participants coming here.
01:48It's over 20% and more requests for investor one-on-one meeting.
01:53I think that's a positive sign.
01:55So meaning the appetite is here to also look at more investment out in the region.
02:02Right.
02:03And also diversifying across the globe, which is a good sign.
02:08That they're looking for, yeah, they're looking at options.
02:10It's a good thing.
02:10Looking for options.
02:11I mean, diversification, I know we talk about that every year, but it seems to have a moment this year, diversification.
02:18So what does that mean in your world?
02:20Is it diversifying between assets outside of public markets?
02:24Like, what do people want?
02:25I think it's both in terms of the different jurisdictions, because we just published the Global Family Office Report, okay?
02:33And interestingly, in that Global Family Office Report, 35% of the Global Family Officers said they will increase the allocation to Asia.
02:42Okay, that's point number one.
02:43And then interestingly, among the Asian clients and all the Asian Family Officers, they also want to increase the allocation.
02:5050% of the Family Officers said they would like to increase the allocation to Asia.
02:57And yesterday, I also hosted a panel.
03:00It's a Middle East investment in Asia.
03:02Asia company going to Middle East.
03:05We have seen increasing interest.
03:07Interestingly, in that report, we have also 45% of the Middle East Family Officers saying they want to increase their allocation into China.
03:16Okay.
03:17And if you look at CATL, the IPO.
03:21I think something happened there two weeks ago.
03:23Yeah.
03:23And we are the co-book runner.
03:26And 500 million ticket, big ticket from the Kuwait Investment Authority.
03:32Yeah, the institutional cornerstone investors.
03:34Oh, yeah.
03:34And also the BYD, not too long ago.
03:38We also have a very big ticket from the Middle East Family Officers.
03:42What seems to be missing is how are investors now looking at exposure to the U.S. market and the U.S. dollar?
03:48I think obviously now given all these geopolitical kind of conflict and also the trade war, the tariff, clients, our family offices are also looking for diversification into and doing hedging on their dollar.
04:07Because among the Asian clients, dollar is a reference currency.
04:11Yes.
04:12So like almost 90, 80, 90 percent.
04:15So they are also looking hedging into yen, Swiss franc, Australian dollar and euro.
04:22So that's another part of the currency diversification.
04:26And then the other part is also to different asset classes.
04:31Gold is still getting very popular.
04:34Hedge funds?
04:34And hedge funds, yeah.
04:35Oh, good that you mentioned hedge funds.
04:39Because according to, again, if I may refer to the global family offices, 45 percent of the Asian family offices use hedge funds for diversification.
04:50And so alternatively, still a very attractive asset class for the family offices to diversify their asset.
05:00Final question for you.
05:01I think we're almost out of time.
05:03We had a story about business class flights.
05:06So let me phrase the question to you this way.
05:09If I left Bloomberg and I joined your team at UBS and I had to go on a business trip to visit a client in mainland China, would you put me in economy or would you put me in business class?
05:20David, what I can say is that we have seen really increasing travel activity out in the region and also globally.
05:29And we have also a lot of clients flying in and out to the AIC.
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