Top trends in wealth management – Manish Singh, CIO, Crossbridge Capital

Date: 21 Jul 2025

Karen Jones

Top 10 wealth management trends with Manish Singh, CIO, Crossbridge Capital.

What is your assessment of the current global political landscape and its impact on wealth management strategies?

Global multilateral institutions like the UN, IMF, and World Bank—along with long-held assumptions about U.S. leadership and post-Cold War multilateralism—are visibly weakening. Traditional collective frameworks are giving way to unilateral actions and small, interest-based alliances. This shift is straining old loyalties on both sides: smaller nations are reassessing their alignment with the U.S., just as the U.S. is showing a willingness to challenge even its closest allies. For instance, the imposition of 25% tariffs on key partners like Japan and South Korea has sent a clear message to others.

Yet, amid all the noise, one thing remains clear: the U.S. and the U.S. dollar continue to dominate. The U.S. is still the global engine of innovation and economic dynamism. In this context, the trend of prematurely talking down America and the dollar—fashionable in some circles—is arguably the greatest risk to long-term wealth management strategies.

In your opinion, how have recent policy shifts in major economies like the US, EU, China affected the long-term stability of private wealth?

When it comes to private wealth, tax policy remains a key variable. Potential hikes in capital gains, estate, and corporate taxes—and even discussions around a wealth tax in the UK—are all factors’ investors must watch closely.

That said, private wealth should always pursue the best risk-adjusted returns, regardless of the prevailing tax or policy environment. One common pitfall is blindly following asset allocation models designed for large endowments, especially those with significant allocations to illiquid investments. These can backfire for private investors.

My advice is simple: if you’re sacrificing liquidity and transparency, ensure you’re being adequately compensated. Earning 10% p.a. on a liquid, flexible investment is often far more suitable than chasing a 14% p.a. return on something illiquid and opaque.

And be wary of seductive IRRs—internal rates of return are not cash returns. They’re projections, often optimistic, and can be manipulated. Focus on real, tangible cash flows over glossy numbers.

How important is diversification in a post-pandemic world, and which asset classes are your clients focusing on?

We are largely an equity house. In my view, equities offer the most compelling returns for medium- to long-term investors—provided one isn’t distracted by short-term noise or volatility. Importantly, volatility does not equal risk, especially when measured against the real threats: erosion of purchasing power and the failure to compound wealth.

Equities have historically outperformed bonds in addressing both. While equities are inherently volatile, that volatility reflects the dynamic, real-time pricing of business risk, opportunity, and growth expectations.

Over time, markets reward innovation, earnings growth, and value creation. Holding equities gives investors a direct claim on the growth of the economy—and, crucially, the global markets into which those companies sell. As GDP expands, businesses grow, and profits rise, equity holders stand to benefit. Bonds, by contrast, offer fixed returns and limited upside. While they serve a role in preserving capital and generating income, they do not create wealth. Ownership does.

What are the emerging risks and opportunities that wealth managers should be most aware of?

Wealth managers should be especially cautious of illiquid investments disguised as liquid ones. These structures can give a false sense of safety and liquidity. Equally important is to understand the role of leverage in any strategy. It’s not uncommon for certain funds to amplify a small spread—say 30 basis points—20 times over, producing what appears to be a stable 6% return with low volatility. On the surface, it resembles a safe, coupon-clipping investment with a high Sharpe ratio. But when markets turn or central banks like the Federal Reserve choose not to backstop certain strategies, that leverage can unravel quickly and catastrophically.

My advice: prioritise liquidity and transparency. Always ask where the leverage is, how it’s used, and what assumptions are baked into the returns. Often, the biggest risk isn’t the one that looks dangerous—it’s the one dressed up to look safe.

In what ways are clients seeking more personalized wealth management services, and how are you meeting those needs?

Since inception of our business in 2008, we have been offering our clients managed accounts tailored to each client’s individual circumstances—designing portfolios based on their specific level of wealth, investment goals, and risk appetite. We don’t rely on pre-defined model portfolios or one-size-fits-all solutions. For clients with sufficient scale, we build fully personalised investment portfolios designed to reflect their unique objectives and preferences.