The evolving demands of wealthy families and the current investment landscape is changing the priorities of family offices.
The latest iteration of an annual report from Citi Private Bank mines the collective insights of a record number of sophisticated investors that make up its global family office clients to determine the key themes and trends for the coming year.
Following on from the equity market rally that began in 2023 but mindful of market volatility and geopolitical uncertainty, the report reveals that family offices are putting their cash to work in risk assets with the expectation of portfolio gains.
There are seven key themes for family offices that have emerged in the 2024 report:
One significant element missing from the top concerns of family offices, the first time since 2021, is inflation.
Family offices are more optimistic about direct private equity, private equity via funds and global developed equities. However, sentiment around global developed investment grade fixed income decreased from 45% to 34%.
Public equities and fixed income both saw weightings rise compared to 2023 and this was most significant among North American respondents.
“Our family office clients are increasingly becoming more global as they seek to create and preserve wealth amidst new market challenges and opportunities,” says Ida Liu, head of Citi Private Bank. “As interest rates evolve and geopolitical challenges persist, ultra-high net worth investors and their families are putting cash to work and shifting their portfolios toward public and private equity. Family offices are focused on the future as they navigate evolving markets worldwide.”
For those seeking international exposure amid economic uncertainty, understanding the impact of the US dollar's strength over other currencies is more important than ever.
With nearly nine in 10 seeing danger to clients' retirement income and legacy plans, among others, CFP professionals are urging strategic planning pivots and tax perks for advice-seekers.
As policymakers convene for their latest two-day meeting, investors are shifting their attention from elevated interest rates to growth concerns and tariff worries.
While he hasn't laid out a clear plan, Treasury Secretary Scott Bessent has gone on record touting "the great AI revolution" in improving the agency's tax collections and customer service.
Momentum continues for fee-based compensation as BD advisors ditch commissions and alternative compensation schemes emerge to lure diverse clientele.
In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'
Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies