Asia-Pacific Family Offices Highlight Bullishness in Equities and Fixed Income: Insights from Citigroup Survey

Asia-Pacific Family Offices’ Optimism Towards Equities and Fixed Income

According to Citigroup's latest survey, family offices in Asia-Pacific have shown a pronounced shift in investment strategies, moving away from cash and investing more heavily in public equities, fixed income, and private assets. With 68% of respondents increasing their equity allocations, the region stands out for its bullishness.

Investment Sentiment and Portfolio Strategies

The survey indicates that family offices in Asia-Pacific are optimistic about stock market returns, with many expecting substantial gains. Of the total surveyed, 21% hailed from the Asia-Pacific region, showcasing a trend towards global investment strategies among wealthy families.

• 68% increased equity allocations
• 42% raised bets on fixed income
• 60% expect portfolios to grow by 10% or more

The MSCI World Index's 54% rise signifies investors are regaining confidence, further bolstering allocations to public equity.

Succession Planning and Governance in Family Offices

As family complexities grow, best practices have emerged, such as:

1. 75% have separated the family office from the family business
2. 51% established a leadership succession plan

Citigroup anticipates a significant number of family offices will undergo succession events in the coming years, especially in Hong Kong. This need for governance and education on wealth planning is vital in preserving family legacy.

Challenges and Concerns Ahead

Despite their bullish outlook, family offices face challenges, particularly with interest rate fluctuations and regulatory compliance. The primary concerns listed by family offices include:

• Interest rate trends
• US-China relations
• Market valuations