Citi Private Bank’s recently released 2024 Global Family Office Survey Insights paints an optimistic picture of a number of aspects of family office investing.
Almost all (97%) of the survey respondents expect positive portfolio returns in the next 12 months. Almost half expect returns of between 5% and 10%, and about one-third predict returns of 10% to 15%.
In addition, respondents felt that, for the most part, they are doing a good job managing risks in a variety of areas, including investment, liquidity, reputation, legal and operational risks. There were a few types of risks that respondents did not universally feel were well managed, though: More than one-third said risks relating to family dynamics, geopolitics and cybersecurity were either not well managed or only somewhat well managed.
The survey of 338 of Citi’s global family office clients covers a wide range of topics, including investments, portfolio construction, private equity, family office management, family governance, and sustainable investing.
Among the survey’s other findings:
- Family offices are shifting their portfolios away from cash: 43% increased their allocations to public and private equity, and half increased their allocations to fixed income.
- Inflation — which had been the top concern in this survey since 2021 — has been displaced at the top of the worry list by interest rates (cited by 52%), US-China relations (45%), and market overvaluation (45%). Inflation was cited by 42%.
- Concern about the conflict in the Middle East (cited by 25%) is a greater geopolitical fear than the Russia-Ukraine war (cited by 16%).
- Asked to list their top family concerns, most respondents included preserving the value of their assets (71%) and preparing the next generation to be responsible wealth owners (59%). Almost half (47%) included ensuring shared goals and vision for their future together.
Read more about the report in Citi’s summary and in recent press coverage:
- Family Offices Dig Into Cash Coffers, Increase Equities, Bonds Exposures — Citi Private Bank (Wealth Briefing)
- Wealthy families getting more bullish on risk assets, Citi survey shows (Reuters)
- Cash no longer king as Asia family offices invest in more equities, bonds, private assets (South China Morning Post)
- Citi Private Bank study reveals priorities for family offices (InvestmentNews)
- Citi: APAC Family Offices Are Rapidly Professionalizing (Finews Asia)
