Cambridge Associates says Asian families need disciplined diversification for multi-generational wealth

Cambridge Associates, which oversees more than US$600 billion in assets, advises Asian families to adopt long-term, customised investment frameworks as they transfer wealth across generations. The firm stresses genuine diversification, strategic asset allocation, and rigorous manager selection to bu

Global investment firm Cambridge Associates, which has more than US$600 billion (S$769 billion) in assets under management and advisement, says Asian families preparing to pass wealth to the next generation need disciplined, customised portfolio strategies. The firm's head of Asia client business, Mr Prabhat Ojha, said long-term investing requires intentional choices rather than relying on broad market gains or past assumptions about diversification.

“Investors need portfolios that are resilient across multiple scenarios, including slower growth, stickier inflation, tighter liquidity and episodes of geopolitical or policy-driven volatility,” Mr Ojha said. “That means being disciplined about strategic asset allocation, but also realistic about how portfolios may behave under various stress scenarios.”

Cambridge Associates builds bespoke portfolios for families and institutional clients such as endowments, foundations, insurance companies and governments. Mr Ojha said effective portfolio construction looks beyond an investment’s standalone appeal to consider its role in the broader portfolio. The firm’s structured enterprise review assesses a client’s portfolio against its objectives, risk tolerance, liquidity needs, possible stress scenarios and existing exposures. Strategic asset allocation sets the long-term mix, while tactical asset allocation allows selective shorter-term shifts when market dislocations or extreme valuations justify them.

Effective diversification is a long-term discipline, requiring regular reviews of how a portfolio may perform under different economic and liquidity conditions and rebalancing to prevent unintended concentrations. “A genuinely diversified portfolio is better positioned to preserve capital, remain invested through stress and compound capital more steadily,” said Mr Ojha. Clients who want to retain decision-making authority can work with the firm on an advisory basis, while those who prefer to delegate more can use its outsourced chief investment officer or discretionary services.

Mr Ojha said he sees opportunities in selected strategies including private equity, private credit, venture capital, infrastructure, hybrid hedge fund vehicles, secondaries and co-investments. He stressed that manager selection is particularly important in these areas. Cambridge Associates tracks more than 12,000 fund managers and 45,000 funds, with only about 5 per cent of those funds making it into client portfolios. “Clients today are increasingly discerning,” Mr Ojha added. “They are looking for a trusted, long-term partner that can help them preserve and grow capital across market cycles and generations.”