In 2025, high-net-worth individuals (HNWIs) are strategically adjusting their investment portfolios to navigate market volatility and capitalize on emerging opportunities. Key trends include diversification into real estate, tailored wealth services, global property markets, and alternative investment funds.

1. Increased Allocation to Real Estate Investment Trusts (REITs)

Amidst market turbulence, many HNWIs are turning to REITs as a stable investment option. REITs offer substantial dividends, making them attractive as long-term bond yields decline.

For example, the Real Estate Select Sector SPDR ETF boasts a 3.3% average dividend yield and has seen gains in early 2025, despite a broader market downturn. Healthcare REITs, particularly those focusing on senior living centers, are expected to benefit from favorable demographics. Additionally, the growth of AI and data consumption supports digital infrastructure firms.

Experts suggest focusing on income-producing REITs like Welltower and Equinix.

2. Embracing Specialized Wealth Management Services

Financial institutions are launching tailored services to cater to the complex needs of HNWIs. For instance, Edward Jones introduced Edward Jones Generations, targeting investors with a minimum of $10 million in investible assets.

This service offers comprehensive financial planning, investment management, and diverse product offerings, reflecting a trend among HNWIs to seek personalized wealth management solutions.

3. Strategic Investments in International Real Estate

HNWIs from regions like the Middle East are capitalizing on favorable currency exchange rates to invest in international real estate markets.

In 2024, investors from Saudi Arabia, Qatar, and the UAE spent an average of $112.45 million each on London’s luxury property market, marking a 24% increase from the previous year.

However, rising UK taxes are prompting some to consider alternative investment hubs such as Hong Kong, Monaco, Tokyo, New York, and Paris in 2025.

4. Leveraging Alternative Investment Funds

HNWIs are increasingly turning to alternative investment funds to diversify their portfolios. Firms like Quantedge Capital employ systematic investment strategies across major macro asset classes, including:

• Bonds
• Equities
• Commodities
• Currencies
• Reinsurance

Since its launch in 2006, Quantedge’s Global Fund has delivered roughly +20% annual returns after fees, attracting HNWIs seeking high performance with diversified exposure.

Conclusion

By adopting these strategies, HNWIs aim to preserve and grow their wealth amidst the evolving economic landscape of 2025. Whether through REITs, personalized wealth services, global property investments, or alternative funds, the focus remains on diversification, resilience, and long-term value creation.