Vision 2035: Hong Kong Edition

By Nick Pollard, Managing Director, APAC at CAIA Association

In what has been an extraordinary year in so many ways, a recent meeting of APAC Global Investors considered what was occupying their minds as they position themselves for an era of uncertainty. 
 

Regime Change and Strategic Repositioning

Geopolitical tensions and structural shifts in global trade were dominant themes across multiple forums, and our Global Leadership Forum in Hong Kong was no exception. There’s a growing consensus that the era of U.S. dominance in global trade is waning. Yet, many Western investors remain unwilling to even entertain the possibility of regime change—a resistance rooted in fear, naivete, or nationalism. This cognitive dissonance is creating strategic blind spots in portfolio planning and risk management.
 

Capital Mobility and Market Viability

One of the most pressing questions for APAC allocators is: “Can we get our money out?” when thinking about the US—a concern traditionally associated with emerging markets. But as geopolitical uncertainty rises, even developed markets are being scrutinized for capital controls and liquidity risks. Europe is viewed as lacking the depth and capacity to absorb meaningful allocations. China’s post-COVID recovery remains sluggish, and India, despite its growth narrative, is still perceived as unfamiliar terrain for many institutional investors. Japan, however, is emerging as a compelling opportunity, especially with recent regulatory reforms allowing investment trusts to include unlisted shares in tax-exempt savings portfolios.
 

Investment Strategy, Risk, and Return

The Rise of Absolute Return and Liquidity Focus

Amid volatility and shifting benchmarks, absolute return strategies are gaining traction. Asian investors continue to value fixed income for its stability and predictable cash flows. Liquidity remains a top priority for Boards, not just as a defensive measure but as a strategic lever in uncertain times. The ability to pivot quickly is now seen as giving highly valued competitive advantage.

Alternatives and the Democratization Dilemma

Retail interest in alternatives is rising, with evergreen structures offering a gateway into private markets. However, real estate—particularly in China—has absorbed much of the available wealth due to its accessibility and leverage potential. This raises critical questions about the pace and inclusivity of alternative asset class democratization in APAC. Will real estate crowd out other asset classes? Can platforms and advisors effectively educate and onboard new investors?

Asian Psychology of Money and Risk Perception

Asian investors exhibit a distinct psychology shaped by historical trauma—notably the financial crises of the late 1990s. This legacy has cultivated a more cautious and inquisitive investor base. High-net-worth individuals in Asia are asking deeper, more probing questions, about risk, liquidity, and cost structures in alternative investments. Compared to their Western counterparts, they are less swayed by marketing narratives and more focused on downside protection and transparency.

Boards and the Short-Termism Trap

The proliferation of instant data and performance dashboards has led to increasingly short-termism behaviour among Boards. The focus is often on the next quarter, especially when performance is strong. There’s a pervasive mindset of “keeping a clean sheet while I still have a job,” which discourages long-term strategic planning. This was echoed in multiple roundtables, where participants debated the “irresponsibility” of Boards that fail to prepare for long-term risks and structural shifts.
 

Education, Talent, and Professional Standards

Understanding Time Horizons

There is broad agreement that education around time horizons is urgently needed. The contrast between the shareholder-driven U.S. model and China’s state-led investment philosophy underscores the importance of contextual understanding. CAIA Association is seen as uniquely positioned to lead this educational effort—not just through curriculum, but by shaping the discourse around long-termism and fiduciary responsibility.

Investor Education and Advisor Competence

Despite growing interest in alternatives, many Asian investors lack clarity on product characteristics, risks, and liquidity profiles. Advisors themselves may be underprepared. One investor commented that only 1% of Chinese investors meet the definition of “Professional Investor.” This gap highlights the need for robust advisor training and investor education—especially as regulators open new channels for retail participation.

Japan’s Untapped Potential

Japan represents a significant opportunity. Retail investors have historically been reluctant to engage with private markets, leaving vast pools of investible wealth untouched. Recent regulatory changes allowing unlisted shares in tax-exempt portfolios could be a game-changer. But success will depend on education at every level: advisors, investors, and institutions.

Talent Expectations and Soft Skills Evolution

The bar for new talent is rising. Junior professionals are expected to deliver high-impact work from day one. Technical skills alone are no longer sufficient. Empathy, collaboration, and systems thinking—the ability to “join the dots”—are becoming as valuable as credentials. Investment practitioners must evolve into holistic thinkers who can navigate complexity and communicate across disciplines.
 

AI, Transparency, and Governance

AI as an Augmenting Force, Not a Replacement

AI was widely discussed as a tool to augment human roles and free up capacity for value-added work. Unlike in Singapore, where cost-cutting and headcount reduction dominated the conversation, HK participants emphasized creativity and innovation. The consensus: AI should start from a blank slate, not just improve legacy systems.

Governance and Over-Reliance Risks

While AI can enhance transparency and accessibility—especially in alternatives—it also introduces governance challenges. Boards must grapple with accountability in AI-driven decision-making. There’s growing concern about over-reliance, particularly among younger professionals. If judgment, character, and competence are outsourced to algorithms, how do we evaluate trustworthiness? As one participant put it: “You can’t AI trust.”

Talent Development and Digital Dependence

The risk of digital dependence is not being talked about enough. Younger generations may paradoxically regress in critical thinking and judgment if they rely too heavily on AI. Talent development must strike a balance: enhancing roles through technology while preserving human accountability and intuition.
 

The Path Forward

The discussions in Hong Kong underscored a fundamental reorientation underway across Asia. Education emerged as both the greatest challenge and the most powerful tool that is essential for investors, advisors, and Boards alike to move beyond short-termism and toward genuine long-term stewardship. 

Cultural and psychological nuances continue to shape how Asian investors perceive and price risk, even as AI and digital tools redefine the boundaries of competence and governance. Ultimately, success in this new era will depend not just on technical excellence, but on cultivating empathy, systems thinking, and a commitment to responsible innovation.

Interested in our insights on our 2035 Vision from around the globe? CAIA’s leadership team provides an exclusive peek into candid conversations that are shaping the future of investing. Check them out below!

Mumbai – Feb 2025  |  Los Angeles – Mar 2025  |  Toronto – Apr 2025  |  New York – Jun 2025  |  Board of Directors - Sep 2025  |  London – Sep 2025 |  Hong Kong – Oct 2025  |  Singapore – Oct 2025 |  Riyadh – Dec 2025 (Coming Soon) 

About the Contributor

Nick Pollard is a seasoned leader with over 15 years of international finance experience in the APAC region. Currently, he is helping drive CAIA Association’s expansion in this key market, leveraging his expertise in business development and his passion for training the next generation of finance professionals. Nick's career includes a successful seven-year tenure as Managing Director for the CFA Institute in APAC, where he worked closely with institutional partners, employers, universities, and regulators. Prior to joining the CFA Institute, Nick held senior leadership roles at The Royal Bank of Scotland’s Coutts Asia division, where he served as CEO, and later, as Head of International Learning and Professional Development for Coutts International. His career began with NatWest Group where he honed his skills in marketing and talent development. Nick has lived and worked in the APAC region for nearly two decades, positioning him at the forefront of the region's economic and demographic shifts. He holds a B.A. from University College, London.