Metrobank Insights: Private Wealth Investors Embrace Selective Approach in 2026
Private wealth investors are entering 2026 with a more cautious and targeted strategy, opting for specific markets and assets rather than making broad, sweeping bets. According to Metropolitan Bank & Trust Co., clients are diversifying their investments more extensively while taking calculated risks in carefully chosen areas. This shift reflects a growing trend among high-net-worth and ultra-high-net-worth individuals to move away from generalized market positioning.
Focus on Emerging Markets and Selective Asset Classes
In its latest market insight report, Metrobank highlighted that investors are increasingly concentrating on regions and asset classes where potential returns align more closely with the associated risks. The bank noted a significant rise in investments in Asia and other emerging markets, which are perceived to offer more attractive valuations and stronger profit outlooks compared to developed markets. Developed markets, on the other hand, continue to grapple with policy uncertainty and elevated expectations.
Ma. Cristina Gabaldon, head of investment management at Metrobank, emphasized this trend, stating, "Investors are no longer simply chasing returns; they are becoming far more selective about how and where capital is deployed." She added that portfolios are becoming increasingly varied as investors strike a balance between seizing opportunities and exercising caution.
Equities Lead Growth with Strategic Use of ETFs
Equities remain the primary driver of growth for medium-risk private wealth portfolios, with investors maintaining higher exposure to stocks than to fixed-income assets like bonds. Many are utilizing exchange-traded funds (ETFs) to gain access to global and regional markets efficiently. ETFs, which are investment funds traded on stock exchanges, are particularly popular for investing in Asian equities linked to long-term growth themes, such as the rising demand for semiconductors fueled by artificial intelligence advancements.
Simultaneously, investors are incorporating fixed-income assets to help stabilize their portfolios amid market volatility. Metrobank reported that funds are being allocated to actively managed mutual funds that invest in global credit markets. These funds manage duration—the sensitivity of bonds to interest-rate changes—and invest in specialized areas, including agency-backed securities, which are bonds supported by government-related agencies.
Rising Interest in Alternative and Digital Assets
Alternative assets are playing an increasingly significant role in portfolios, with Metrobank noting higher investments in commodities such as gold and silver. Investors view these assets as a hedge against geopolitical risks and currency fluctuations, often accessing them through ETFs for ease of trading. Additionally, interest in digital assets is growing, especially among younger ultra-high-net-worth clients. While still primarily used for short-term strategies, cryptocurrencies and related products are being integrated to complement traditional investments and enhance diversification.
In contrast, demand for private equity, real estate, and hedge funds remains subdued, as higher financing costs continue to impact these less liquid investment options. Overall, Metrobank's analysis indicates that asset allocation trends heading into 2026 reflect a more deliberate and thoughtful investment mindset. Portfolios are anchored on equities for growth, supported by selective fixed-income and alternative assets to manage risk in a fragmented and unpredictable global market.
