Global Family Office Report 2024
What‘s on the minds of family offices around the globe? What shifts are they planning in their strategic asset allocation? Find out in the world’s most comprehensive study of its kind.
Welcome
The latest Global Family Office Report is the largest to date bringing together the insights of 320 single family offices across seven regions of the world. Representing families with an average net worth of USD 2.6 billion and covering over USD 600 billion of wealth, it confirms the report as the most authoritative analysis of this influential group of investors.
Executive summary
Key findings
-
Family offices carried out
some of their biggest
shifts in strategic asset
allocation in 2023, in a
move to rebalance
portfolios.
-
In a shift that may
reflect elevated bond
yields as much as active
decision-making, they
lifted allocations to
developed market fixed
income by the largest
amount seen in five
years.
-
Allocations to real estate
declined at a time when
commercial real estate
prices in some regions
have been falling.
Compared to 2023, fewer
family offices expect to
make changes in 2024.
Key findings
-
The risk of a major
geopolitical conflict is
clearly the top concern
for family offices, both
in the near and medium
term.
- Inflation and interest rates are among the other top concerns over the next 12 months but longer term they play a less prominent role.
-
Family offices are more
concerned about climate
change and high levels of
debt over the next five
years.
Key findings
-
Family offices have kept
their largest regional
allocations in North
America.
-
Looking ahead, North
America and Asia-Pacific
(excluding Greater China)
look set to be the top
destinations of added
allocations, with over a
third looking to increase
allocations to each of
these regions respectively
over the next five years.
-
But there remains a strong
home bias, especially in
the US followed by Spain
and Europe.
Key findings
- Family offices say that they are relying more on active management and/or manager selection to diversify portfolios.
- This comes at a time when the divergence of stock performance has increased.
- High-quality short duration fixed income is also favored for diversification, especially in the US.
Key findings
-
For family offices,
sustainability is becoming
an essential matter of
risk and opportunity.
-
As many perceive climate
change becoming a major
concern, so they see
sustainability as driving
risks and opportunities
for both their operating
businesses and investment
portfolios.
-
As sustainability
requirements become more
specific, partly driven by
regulation in sectors such
as real estate, family
offices want more
sophisticated information
and advice.
Key findings
-
Rather than carrying out
the full gamut of tasks to
support families, many
family offices concentrate
mainly on investments
in-house.
-
Most family offices not
only make investment
decisions but also execute
them. They also focus
primarily on financial
rather than non-financial
risks.
-
With most family offices
employing few staff, it is
potentially challenging to
do anything more than
their core tasks.
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