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Get updates on the HavenSphere® Index (MHI) Reports

1. Introduction

In an era marked by geopolitical tensions, evolving monetary policies, and shifting investor priorities, the evaluation of Safe Haven Assets (SHAs) requires a meticulous and adaptive approach. The MagicDust HavenSphere® Index (MHI) offers a structured framework to assess the relative safety and appeal of various assets across different investor profiles. This report presents the MHI scores for a selection of SHAs, tailored to the specific priorities of Institutional Investors, Family Offices, High Net Worth Individuals (HNWIs), Sovereign Wealth Funds (SWFs), and Pension Funds.​

2. Methodology Overview

  • Data Sources: Utilised the comprehensive MagicDust HavenSphere® Index Data Sources (MHIDS) to ensure all relevant and up-to-date information is considered.​

  • Evaluation Criteria: Each SHA is assessed against the eleven Safe Haven Criteria (SHC), encompassing factors such as liquidity, volatility, transparency, regulatory environment, and leverage opportunities.​

  • Investor Type Weightings: The SHCs are weighted according to the specific priorities and risk appetites of each investor type, ensuring a nuanced and tailored assessment.​ Each investor profile applies a unique weighting to the Safe Haven Criteria, ensuring that MHI scores reflect the differing priorities, return targets, and risk tolerances across the investment landscape.

  • Scoring: Each SHA receives an MHI score out of 100 for each investor type, facilitating comparative analysis across assets and investor profiles.​

3. MHI Scores Matrix
6. Observations and Trends

1. Gold's Ascendancy Amid Geopolitical Turmoil
Gold has reaffirmed its status as a premier safe-haven, with prices surging to record highs above $3,300 per ounce in April 2025. This rally is driven by escalating geopolitical tensions, notably the intensifying U.S.-China trade disputes and the imposition of sweeping tariffs by the U.S. administration. Investors are increasingly turning to gold to hedge against market volatility and inflationary pressures. Central bank purchases and robust demand from emerging markets further bolster gold's appeal.
 
2. UAE Real Estate: A Rising Contender
The UAE's prime residential real estate market, particularly in Dubai, continues to attract significant interest from Family Offices and High Net Worth Individuals (HNWIs). Factors contributing to this trend include:
 

  • Leverage Opportunities: Off-plan payment structures allow investors to commit with minimal initial capital, enhancing the market's attractiveness.

  • Regulatory Environment: Investor-friendly policies, such as the golden visa program linked to property investments over AED 2 million, provide long-term residency incentives.

  • Market Performance: Dubai's real estate market achieved a historic milestone in early 2025, recording AED 100 billion (approximately USD 27.2 billion) in sales within just 44 working days, culminating on March 4, 2025. This accomplishment marks the fastest timeframe to reach such a sales figure, surpassing previous records set on March 22, 2024, and April 11, 2023.

    The accelerated growth is attributed to several factors:
     

    • Robust Market Activity: The first two months of 2025 witnessed real estate sales totaling AED 94.8 billion from over 30,000 transactions, representing a 32% year-on-year increase.

    • Investor Confidence: The UAE's political, economic, and security stability continues to attract foreign investors, bolstered by investor-friendly policies such as the Golden Visa program linked to property investments over AED 2 million.

    • Market Momentum: Industry experts anticipated continued growth during the holy month of Ramadan, traditionally a period of heightened real estate activity, with expectations to surpass previous sales records. This appears to have been the case.
       

These developments collectively enhance the MHI scores for UAE real estate, particularly for Family Offices and High Net Worth Individuals (HNWIs), positioning it as a compelling Safe Haven Asset.


 3. Re-evaluating Traditional Safe Havens
While U.S. Treasuries have traditionally been viewed as safe-haven assets, recent developments have introduced complexities. Aggressive selloffs and rising yields, driven by inflation concerns and policy uncertainties, have challenged their traditional role. Investors are now re-evaluating the risk-return profile of Treasuries, considering alternative assets to hedge against market volatility and inflationary pressures:
 

  • Yield Volatility: The 10-year U.S. Treasury yield has experienced significant fluctuations, reflecting investor uncertainty.

  • Foreign Holdings: Major foreign holders, including Japan and China, have reduced their Treasury holdings, indicating shifting confidence levels.
     

These dynamics suggest a nuanced landscape for traditional Safe Haven Assets, with investors seeking diversification beyond conventional assets.
 
4. Diversification into Alternative Assets
Investors are increasingly exploring alternative assets to mitigate risks and enhance returns:
 

  • Private Equity Secondaries: Offering access to mature assets with potentially lower risk profiles, these investments appeal to those seeking diversification.

  • Defensive Equity Sectors: Sectors such as utilities and consumer staples provide stability during economic downturns, attracting interest from conservative investors.
     

This shift underscores the evolving strategies employed by investors to navigate complex market conditions.
 
5. Regional Diversification and Currency Considerations
The Swiss Franc (CHF) has appreciated significantly in 2025, reaching near decade-high levels against major currencies. This surge is attributed to investor demand for safe-haven assets amid global trade tensions. However, the rapid appreciation poses challenges for Switzerland's export-driven economy, prompting the Swiss National Bank (SNB) to consider reintroducing negative interest rates to curb the franc's strength and mitigate deflationary risks. Its resilience during global financial uncertainties and Switzerland's robust economic policies contribute to its attractiveness as a safe-haven asset.

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4. Investor Profiles

Institutional Investors
Institutional investors, such as asset managers and insurance companies, manage substantial capital pools with fiduciary responsibilities. Their investment strategies prioritise capital preservation, regulatory compliance, and consistent returns. Liquidity, transparency, and minimal volatility are paramount considerations.​

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Family Offices
Family offices oversee the wealth of high-net-worth families, often across multiple generations. Their investment approach balances wealth preservation with growth, incorporating a mix of traditional and alternative assets. They value diversification, tax efficiency, and investments that align with the family's values and long-term objectives.​

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High Net Worth Individuals (HNWIs)
HNWIs are individuals with substantial investable assets, often seeking personalised investment strategies. They may exhibit a higher risk tolerance, exploring opportunities in alternative investments, real estate, and private equity. Their focus is on wealth growth, legacy planning, and maintaining lifestyle aspirations.​


Sovereign Wealth Funds (SWFs)
SWFs are state-owned investment funds managing national reserves. They have long-term investment horizons, aiming to diversify the country's wealth and achieve intergenerational equity. SWFs invest across a broad spectrum of assets, balancing risk and return while considering geopolitical and economic factors.​


Pension Funds
Pension funds manage retirement assets, with a primary focus on ensuring long-term solvency and meeting future liabilities. Their  investment strategies are typically conservative, emphasising stable returns and asset-liability matching. They prioritise investments in high-quality fixed income and other low-risk assets.​

Business Investor
5. Commentary and Insights

Each asset evaluated under the MagicDust HavenSphere® Index framework offers a distinct balance of risk and resilience. No safe haven is risk-free — but the highest-scoring assets, through each specific investor lens, represent the most effective configurations of MHI protective characteristics available today

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Gold
While gold continues to be perceived as a safe-haven asset, recent market dynamics necessitate a nuanced view. As of April 2025, gold prices have surged above $3,000 per ounce, driven by escalating geopolitical tensions and increased central bank purchases. However, this rally has also introduced heightened volatility, with prices experiencing significant fluctuations in response to shifting economic indicators and policy decisions. Investors should weigh gold's traditional stability against its current price volatility when considering its role in diversified portfolio. However, considering our comprehensive SHC framework, which includes factors like yield and regulatory environment, gold's lack of income generation and potential regulatory constraints may temper its appeal for certain investors.

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UAE Prime Residential Real Estate
UAE prime residential real estate, particularly in Dubai, scores notably high, especially among Family Offices and HNWIs. The market offers unique leverage opportunities through off-plan payment structures, allowing investors to secure properties with low initial deposits and extended payment plans. Additionally, the UAE's investor-friendly policies and consistent capital appreciation in prime areas enhance its appeal.​


Government Bonds
German and Swiss government bonds maintain high scores, reflecting their stability and reliability. U.S. Treasuries also score well, though concerns over fiscal policies and market volatility have slightly tempered their appeal.​


Real Estate in Global Cities
Real estate in established global cities like London, Tokyo, and New York remains a preferred choice for Family Offices and HNWIs, offering a balance of stability and potential for appreciation. However, higher entry costs and regulatory complexities in these markets may impact accessibility and flexibility for certain investors.​


Swiss Franc 
The Swiss Franc (CHF) has solidified its status as a premier safe-haven currency in 2025. Amid escalating global trade tensions, particularly the U.S.-China tariff disputes, the CHF has appreciated significantly, reaching a 14-year high against the U.S. dollar . This surge reflects investors' flight to safety, driven by Switzerland's political neutrality, robust economic fundamentals, and low inflation environment.​ Despite the Swiss National Bank's (SNB) efforts to mitigate the franc's strength, including maintaining low interest rates and signalling potential interventions, the currency's appeal remains undiminished . For Institutional Investors and Pension Funds, the CHF offers a stable store of value, while Family Offices and HNWIs appreciate its resilience during market volatility.​


Japanese Yen
The Japanese Yen (JPY) has experienced appreciation so far in 2025, driven by its safe-haven appeal amid global economic uncertainties. However, the Bank of Japan (BOJ) faces a delicate balance, as further yen strengthening could adversely impact Japan's export competitiveness. Consequently, the BOJ is expected to maintain its accommodative monetary policy stance, potentially delaying further interest rate hikes to support economic growth and manage currency appreciation.  In the context of global economic uncertainty, the JPY has appreciated against several major currencies, attracting investors seeking stability. Institutional Investors and Sovereign Wealth Funds, in particular, value the Yen's liquidity and Japan's economic resilience.​


Defensive Equity Sectors
Defensive equity sectors have demonstrated resilience amid economic uncertainties in 2025. Companies within utilities, consumer staples, and healthcare have maintained stable earnings and dividends, attracting investors seeking lower volatility and consistent returns. However, it's essential to recognise that these sectors are not immune to broader market dynamics, and their performance should be evaluated within the context of overall portfolio diversification strategies. These sectors offer stable dividends and lower volatility, making them attractive to Pension Funds and Institutional Investors aiming for steady income streams. Family Offices also consider these sectors for portfolio diversification and risk mitigation.​

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Private Equity Secondaries
Private equity secondaries provide investors with access to mature, cash-flow-generating assets at potentially discounted valuations. While they offer diversification benefits, considerations around liquidity and market transparency may influence their suitability. Family Offices and HNWIs with longer investment horizons and higher risk tolerance may find these assets appealing for their potential returns.​

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Safe Haven Asset (SHA)
Institutional
Family Office
HNW Individuals
Sovereign Wealth Funds
Pension Funds
Gold
92
90
91
89
88
U.S. Treasuries
88
86
85
87
89
German Government Bonds (Bunds)
90
88
87
89
90
Swiss Government Bonds
92
89
88
91
91
UK Gilts
85
84
83
84
85
Japanese Government Bonds (JGBs)
87
85
84
86
87
Swiss Franc
89
90
91
90
89
Prime Central London Real Estate
80
85
88
83
82
Tokyo Real Estate
82
84
86
84
83
New York Real Estate
78
80
82
79
78
Paris Real Estate
79
81
83
80
79
Singaporean Real Estate
81
83
85
82
81
UAE Prime Residential Real Estate
85
90
92
86
84
KSA Real Estate
74
75
77
76
75
Private Equity Secondaries
70
72
74
71
70
Defensive Equity Sectors
83
80
81
82
83

MagicDust
HavenSphere® Index (MHI) Report 
April 2025

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