Fifth Third Wealth Advisors has built a niche in managing assets for the ultra-high-net-worth, with $7.8 billion under management since its 2022 launch. The firm’s average client household holds about $9 million in assets, according to Chief Investment Officer Chris Osmond. That scale allows advisors to take on riskier private market investments if clients are willing.
Wealth Management recently spoke to Osmond about the firm’s approach to investment strategy, why he’s very bullish on infrastructure investments, and trying to calibrate allocations in a market that is sending contradictory signals.
Osmond’s bullish stance on infrastructure stems from its dual appeal: it captures two parallel trends, digital transformation and global industrial modernization, while offering inflation-resistant cash flows.
The firm’s approach blends strategic and tactical allocations. Public markets rely on a core-satellite model: passive U.S. large-cap equities for efficiency, active management in emerging markets and fixed income where inefficiencies exist. Private markets follow a similar structure, core investments like private equity or real assets, with satellite strategies for higher-risk, higher-reward opportunities.
For clients with over $10 million in assets, private market allocations start at 20% of the portfolio; for those with less, the target is 10%. Real assets, infrastructure, commodities, precious metals, get consistent weight regardless of risk tolerance due to their growth, income, and tax advantages.
Osmond’s team recently shifted away from an overweight in emerging-market debt, replacing it with strategic bonds and collateralized loan obligations. The move reflected concerns over U.S. high-yield spreads and a stronger dollar. Small and mid-cap stocks remain overweight, though Osmond is now evaluating whether to reduce that position amid conflicting market signals.
Digital assets get limited exposure through AI-focused ETFs, but Osmond warns against overconcentration. Osmond said: “We do look at the digital transformation we are currently undergoing as a long-term secular thing.However, there is also a tendency that someone can be very concentrated in these things, even if it’s . So, we try to promote exposure, but in a very balanced approach.”
Inflation and rising yields dominate the risk outlook. Long-term yields are under pressure from fiscal deficits, global capital competition, and AI-driven corporate debt issuance. If rates stay raised, interest-rate-sensitive sectors, especially tech and growth-oriented small caps, could face headwinds. Refinancing risks loom as post-COVID debt matures, forcing companies to take on higher-cost borrowing.
Direct indexing is used for tax-managed equity strategies, while fixed income relies on in-house institutional teams for customized bond portfolios. Third-party managers handle public equities, with due diligence prioritizing consistency across market cycles.