Global Family Offices – changing investment patterns
According to UBS Global Family Office Report, family offices are bracing for a substantial realignment in their strategic asset allocation, marking one of the most significant shifts witnessed in recent years, all propelled by the evolving global landscape.
- Thinking ahead to the next three years, family offices are most concerned about geopolitics. They appear less anxious about rising inflation, which was the top concern last year but currently ranks third, after geopolitics and recession.
- Family offices are bolstering their investments in regions that have seen lower favor in recent years. Around 25% of them intend to augment their allocations in Western Europe over the next five years, and nearly 33% plan to elevate their allocations across the broader Asia-Pacific region.
- Due to the regime shift, family offices have already begun increasing their allocations to hedge funds and are also contemplating further increments in allocations to developed market fixed income over the upcoming five years
They are also looking to increase their allocation to private equity with a specific emphasis on secondaries, as other limited partners seek liquidity amid portfolio rebalancing or forced selling.