According to Citi and its 2023 Global Family Office Survey Insights, 66% of family offices said they were seeking opportunistic deals with asset allocation based on attractive valuations.
However, 38% paused new direct investments due to economic uncertainty.
In addition, over half (51%) reported upping fixed income allocations, 38% increased private equity allocations and also 38% cut public equity allocations.
Popular investments and asset allocations for family offices
Technology was the most popular sector for direct investment in every region apart from Latin America, where they preferred real estate (57% vs 43%).
Healthcare was also divisive as 58% of family offices in Europe, the Middle East and Africa, and 56% of Asia Pacific family office names the sector in their top three. This is in comparison to only 26% in North America.
Also, 74% of family offices reported their primary focus had shifted to wealth management and investment management (55%). This comes ahead of priorities such as family unity and continuity (21%).
Furthermore, families are preparing for the future by preserving asset values (68%) and preparing the next generation (60%).
“We are excited to share this year’s survey findings, which reflect the needs and actions of some of the most diverse and sophisticated family offices around the world,” says Hannes Hofmann, global head of the global family office group at Citi Private Bank.
“With 268 respondents, we believe this is the most comprehensive survey of its kind, offering unique insights into the global challenges and opportunities family offices face today. With two thirds of respondents from outside the US, we have the opportunity to compare findings between Asia, Europe, Latin and North America, as well as between family offices that serve first and second generation families, versus third, fourth and later generation. We look forward to working closely with our family office clients, to enable them to access all areas of Citi across wealth management, investment banking, commercial banking and custody and security services.”
“Our family office clients are becoming more global and are facing new challenges and opportunities in managing and creating wealth,” says Ida Liu, global head of Citi Private Bank.
“With inflation, market volatility and geopolitical concerns top of mind amongst ultra-high net worth investors and their families, they are readily diversifying their portfolios and considering direct and sustainable investments. It’s clear they are thinking beyond the now with an eye toward the future.”