A survey by Citi Private Bank found UHNWIs and family offices cautious of investment opportunities and risks amid the market volatility caused by Covid-19.
The survey led by the Private Capital Group involved responses from 179 participants.
Of the respondents, 127 were those with family offices and the rest were UHNWIs without a family office.
The respondents were from 103 different countries.
Around three-quarters of the respondents called their 12-month investment sentiment as “cautious”.
The key concern was the Covid-19 crisis. This included both vaccine availability and monetary and fiscal response by governments and central banks.
Going into 2021, around half of the respondents expected total portfolio returns of 1-5% in the next year.
Regarding the portfolio changes they intend to make, 56% said that they plan “some tactical changes” whereas 14% cited “significant portfolio changes”.
According to the study, 59% of the family offices increased their allocation to direct investments for the coming 12 months.
The respondents also cited IT, health care and real estate as their favoured sectors for direct sector investments.
Stephen Campbell, Managing Director and Chairman, Private Capital Group, Citi Private Bank noted: “We find that family offices and ultra-high net worth individuals have weathered the crisis well.
“They are positioned to deploy further capital as they see opportunities arise, especially in private markets.
“However, it cannot be ignored that the survey found liquidity to be at a premium, and clients often willing to sacrifice short to medium term returns to maintain that.”
Citi Private Bank offers a range of services.
These include capital markets, trust and estate planning, investment finance, banking and aircraft finance, art advisory and finance, and sports finance, among others.
The business caters to clients across 50 cities in more than over 100 countries. It has nearly $500bn in total client business.
Earlier this year, Citi Private Bank named Lee Lung Nien as its South Asia chairman.