A report says that the lion's share of wealth sector figures find that international politics, conflicts and developments are causing concern. In other findings, the wealth sector is seen as being slow at adopting AI in its practices.

A survey of 250 wealth sector professionals worldwide by MSCI, the market index and data provider, finds that the overwhelming majority – 86 per cent – say their clients worry about geopolitical uncertainty.

And in a sign of a geographic asset allocation tilt, 61 per cent expect to put more money into developed markets outside the US. 

The report, World Wealth Trends 2026, shows how volatile markets create potential to make money as well as add to the need for risk-mitigation strategies. When broken down by location, half of those surveyed are in the US, 26 per cent are in Europe and 24 per cent are in Asia. The respondents work at multi-family offices, investment houses, boutique wealth advisors, private banks and independent registered investment advisors.

“This year’s survey reveals a decisive realignment. Advisors are moving away from highly concentrated US equities and towards a more globally balanced definition of risk and return,” the report said. It noted that just under a third (31 per cent) expect to increase their US equity exposure. Some 48 per cent predict that they will increase emerging market exposure.

Such findings chime with the idea that while the US stock market has long outperformed those of rival peers, high valuations, and the often highly concentrated nature of US stock indices, home to the Big Tech “Magnificent Seven,” has prompted a move to diversify. Also, last year’s jolt from the “Liberation Day” US tariffs and fears about fractures in the western military alliance has encouraged a shift into European equities.

“It’s possible the shift away from US equities is tactical, reflecting tariff-related forces specific to 2025, marking the beginning of a broader challenge to the long-standing US growth premium,” the MSCI report said. “But the movement into non-US and private market assets appears more strategic than defensive. Advisors are using global diversification to hedge geopolitical concentration risk while pursuing opportunities in markets traditionally underrepresented in client portfolios.”

The report may also indicate how an understanding of and awareness about politics – even if it can be dismissed as “noise” – is important for the wealth management sector, and can drive asset allocation decisions both on the strategic and tactical side. (This news service is also looking into whether people with a deep understanding of national and regional politics are increasingly sought after in this industry.)

AI lagging?
On other topics, the report said there are signs that wealth managers are still unclear about the best way of embedding AI into their practice. While almost all firms intend to boost investment in AI tools, 44 per cent think the wealth segment’s adoption rate of AI lags behind broader financial services.

“Much of advisors’ AI focus is on tasks intended to maximise efficiency such as automating proposals, personalising portfolios and simplifying reporting – all powered by off-the-shelf solutions. Adoption, consequently, may feel incremental rather than transformational,” the report said.