Investors shift from growth bets to capital preservation mode

Energy emerges as the top hedge against an AI and tech unwind.

Singapore investors appear to be more cautious than their regional counterparts as they focus more on preserving capital.

“Singapore investors appear significantly more focused on preserving capital than their regional peers (64% vs 44%), reflecting a cautious approach amid ongoing market uncertainty,” according to the Schroders Global Investor Insights Survey 2026.

In a separate report, CGS International said investors are putting their money into sectors that are seen to better withstand cost pressures and economic uncertainty. Specifically, they are leaning towards clearer earnings growth, stronger pricing power, or exposure to artificial intelligence (AI) and higher interest rates.

The Schroders report said that energy is the preferred sector if markets rotate away from AI and technology, with 62% of Singapore investors identifying it as a source of returns and diversification, higher than the 50% logged across Asia Pacific (APAC).

In the equities market, retail investors are turning to gold as their expectations for AI and technology stocks dropped in the first quarter, according to the Retail Investor Beat survey. The report found that 50% of 1,000 Singapore-based retail investors are now invested in gold, as excitement around AI and tech stocks moderates.

Meanwhile, Schroders also reported that 70.5% of Singapore investors cited nimbleness to navigate uncertainty as a key benefit of active management, versus 55.2% across APAC.

Singapore investors are also amongst the most likely globally to evaluate public and private equity opportunities through a combined framework, with 72% taking a holistic approach compared with 53% across the region.

“Across APAC, a majority of investors now assess public and private credit opportunities through a combined framework rather than separate allocation processes (54% vs. 46%),” Schroders said.

“This is reflected in growing adoption of private credit, with the proportion of Singapore investors holding no private credit expected to fall from 17% to 9%, compared with 23% to 15% across APAC,” it added.

Compared to its regional peers, the Schroders poll also found that Singapore investors are more likely to take a holistic approach when assessing income opportunities across equities, fixed income and private markets, with 62% using a cross-asset framework compared with 57% across APAC.

Schroders also said that APAC investors' approach to income is shaped by a strong focus on inflation protection, with 49% citing real income above CPI as a primary reason for allocating to income-generating assets, led by Singapore (57%) and China (56%).