Wealth managers shift toward portfolio advice

Private markets and AI drive advisory overhaul.

Wealth managers in Asia are shifting from product sales to portfolio advice as client demands broaden, private markets expand, and generative AI helps firms deliver personalised service at scale. The change comes as Asia-Pacific onshore financial assets could reach $81t by 2027 and generate about $1t in revenue, increasing pressure on firms to manage more complex portfolios efficiently. 

James Verner, Head of Aladdin Wealth Tech for APAC at BlackRock said investors now expect a wider discussion that covers their entire financial position, not just individual products. “That's really around the client wanting a more holistic conversation. To think about their whole balance sheet, their portfolio risk, their financial goals, maybe even sort of liquidity across the entire portfolio.”

That shift is also being driven by the growing complexity of client holdings. “The portfolio complexity has outgrown the product conversation. There's so many factors to consider. It could be geography, it could be asset class, or certain vehicles that they're invested in,” Verner said. He added that banks and wealth managers also need a more scalable model than product-by-product selling.

Private-market growth is making transparency more urgent as these assets reach a broader base of wealthy clients. Verner said private markets have moved beyond their traditional institutional investor base, increasing the need for clearer data on valuations, cash flows and comparisons between opportunities. 

That broader participation is raising the importance of trust. “Transparency of data, having the ability to compare one investment opportunity against another, thinking about the cash flows and valuations. That level of transparency is critical when you think about building trust and confidence with the end investor,” Verner said. He added that opacity makes investors less willing to allocate capital.

Generative AI is also emerging as a practical tool for advisors. Verner said one major benefit is helping firms turn large amounts of market data into tailored client insights.

AI can also reduce time spent on manual tasks. “The introduction of auto commentary helped to provide insights at individual customer portfolio level. This is now being done at a click of a button,” he said, adding that less time on preparation and reporting could free advisors to spend more time with clients.