Global retail investors have pulled back into cash amid uncertainties from Middle East conflicts, while high-net-worth clients have continued to pursue investment opportunities in Asia and alternative assets, according to the CEO of Schroders.“What we saw in March was a reversal of the trend that we had seen at the end of 2025 and in January and February, when people increased their interest in investing in stocks,” said Richard Oldfield, global CEO of Schroders.“What really happened in March was a shift into a risk-off, particularly from retail investors globally as people moved more into cash.”The sentiment turned after the US-Israel war with Iran began on February 28, which pushed oil prices above US$100 a barrel. The war and the rise in oil prices led to worries over inflation and a knock-on impact on the economy, with the Hong Kong benchmark Hang Seng Index falling 7 per cent in March.“Both retail and institutional investors invest in times when they are feeling confident, and they are certain about what is going on,” Oldfield said. “Facing the uncertainty means they generally hold back from making investment decisions or allocating funds, and certainly retail investors, they’re often sitting on cash.”Under such conditions, diversification and actively managed investment strategies offered the flexibility and bottom-up approach to reallocate capital within different classes to manage risk and capture returns, he added.