How should family offices be thinking about their investments in 2024?
According to financial services firm Mercer, it’s a good time for family offices to reassess their portfolios. Mercer has tailored and summarized the findings from three in-depth reports specifically for single family offices. “Single-family offices 2024 outlook” offers highlights of the firm’s advice in three areas:
* Reassess medium- to long-term positioning: In the aftermath of the pandemic and interest rate hikes, family offices have an opportunity to improve the risk allocation of their portfolio, as well as to enhance portfolio efficiency. There are two options for enhancing efficiency: expanding their portfolio to include alternative investments or reviewing their existing alternative investment programs.
* Look beyond developed market equities and traditional fixed income investments: Macroeconomic trends, including anticipated declines in wage growth and inflation, point to opportunities in emerging markets and areas such as opportunistic multiasset credit.
* Anticipate long-term structural trends: The report focuses on energy modernization and environmental issues as two key areas that could transform the global economy and society — and that merit attention from investors focused on generating multigenerational wealth.
