More Asian businesses, family offices increasing US allocation

They are optimistic equities, real estate will benefit from Trump's pro-business policies

- Angela Tan

More Asian business owners and large family offices are increasing their allocations to US equities and real estate, fuelled by optimism over US President-elect Donald Trump's pro-business policies.

As a result, they are seeking help to structure their US investments and address any tax compliance issues ahead of Trump's inauguration, scheduled on Jan 20, 2025.

While the S&P 500 US stock market index has been tempered in recent days by inflation concerns, it remains near record highs and is up more than 20 per cent this year.

According to the latest Global Fund Manager Survey from Bank of America, respondents were more optimistic after the US election, which took place on Nov 5.

Allocations to US equities surged post-election to the highest level since August 2013, with investors holding 29 per cent of the asset class, compared with 10 per cent in October.

Some 43 per cent said they expect US equities to be the best-performing asset class in 2024, compared with 27 per cent of respondents pre-election.

"A number of our clients are allocating more of their assets to US real estate and equities because one of the core fundamental tenets of what Trump wants to do is reduce the corporate red tape as well as corporate tax rate from 21 per cent to 15 per cent," said Mr Kurt Rademacher, partner and head of US private client at international law firm Charles Russell Speechlys.