Why some investors are looking East to balance their portfolios
If you’ve been looking to diversify your investment portfolio beyond the highly concentrated 'traditional' markets, you’re not alone. Investment professionals have noted a marked shift in interest toward Asian markets – and for good reason.
As markets in the US, UK and Europe become over-traded, many globally minded investors are recognising the risks of overexposure and looking for a better balance.
What does diversification look like today?
For years, diversification may have meant spreading your investments into these markets, relying heavily on indices like the S&P 500. But here’s the problem: those indices are carrying more risk concentration than ever.
The S&P 500, for example, has seen over 37% of its weight in just a handful of companies. The so-called Magnificent 7 – Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Tesla and Meta Platforms – dominate the index, with a combined market capitalisation of some US$22 trillion by mid-2025.
This kind of concentration risk can even affect portfolios that may appear diversified on the surface. What that means for everyday investors is that more of their future wealth is dependent on the fortunes of a smaller group of mega-cap stocks.
In response, globally minded investors are exploring opportunities that offer exposure to a broader cross-section of economic sectors – particularly in the East.
Reuters has reported that more than $100 billion in capital flowed to Asia, excluding China, in the first nine months of 2025.
From familiar giants to new growth stories
Take China’s CSI 300 Index. It includes 300 large-cap, liquid stocks from both the Shanghai and Shenzhen exchanges. These companies span sectors like finance, consumer goods, healthcare, industrials and tech, offering exposure to one of the world’s most diverse and dynamic economies.
In a time when traditional markets feel increasingly narrow, the CSI 300 offers something different: breadth, balance, and growth potential that’s less correlated with the West.
Data shows that more capital is flowing to Asia, suggesting growing confidence in the opportunities available in the region.
Low-friction ways to gain Asian exposure
Of course, direct equity investment in emerging markets isn’t for everyone. That’s where capital-protected* structured products like Standard Bank Offshore’s Deposit Plus 12 (DP12) come in.
DP12 is a five-year, capital-protected deposit linked to the performance of the CSI 300. It gives you:
- Access to one of Asia’s most prominent indices
- A market-linked return of 70% of the market performance
- Full capital protection (as long as you stay invested for the full term)
- Available in GBP, USD, and AUD
If you’re looking for growth without giving up safety, DP12 may offer a measured way to dip your toe into new markets.
The bigger picture
At Standard Bank Offshore, we’re seeing a shift. Clients are no longer asking, “How can I get more of the same?” but rather, “What haven’t I considered yet?”. In that context, looking East isn’t about chasing the next big thing. It’s about recognising that the world is changing, and so too should the way we allocate capital.
As always, we encourage thoughtful reflection and informed decision-making. For those exploring new avenues, now may be the right time to start a conversation with your financial advisor.
You can read more about this structured product by clicking here.
*Capital protection refers to the Product’s design to repay your original deposit in full, in the deposit currency, provided you retain your deposit to the relevant Maturity Date.
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