“It’s not like investors are so burnt [from 2022] that they want to take out their money into cash. Instead, we have seen an appetite from investors to consider different asset classes.”

De Broux explains that the democratisation of the private markets by regulation such as Eltif makes it easier for retail investors to enter private debt and private equity funds normally reserved for large-ticket institutional investors. The yield on these alternative assets is attractive for private banking clients, but he warns that liquidity is still a barrier.

“Even if a solution is provided for the liquidity of alternative assets for retail clients, we must still consider these assets as long term, and more liquid investments should also be included in the portfolio for diversification purposes,” he said.

In terms of risk appetite, he is seeing robust curiosity from clients. “Investors continue to be exposed and to ask questions about what to expect for 2023 following the very sharp increase in interest rates in 2022. Options to stay invested and generate additional returns are still there. We have to be aware of how exceptional this time is.”