Citi Private Bank study reveals priorities for family offices

Citi Private Bank study reveals priorities for family offices
Seven key themes have emerged from the new research.
SEP 19, 2024

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:

  1. The challenge of meeting families’ expectations regarding asset preservation and preparing the next generation for future responsibilities.
  2. Significant portfolio shifts from liquid resources to fixed income, and public and private equity.
  3. Optimism for the year ahead with 97% expecting positive returns and more than half expecting these to be at least 10%.
  4. Top concerns including interest rate trajectory and geopolitics such as US-China relations and Middle East conflict.
  5. More sophisticated investing with 60% having built a CIO-led investment team, investment committees and investment policy statements, and a strong commitment to alternative asset classes.
  6. Growing exposure to AI from an investment point of view, but slow adoption of this technology within family offices.
  7. Collaboration with external partners while most family offices retain investment management and reporting in-house.

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.”

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.