SUMMARY
Family office clients put more of their cash to work in the third quarter of 2023. However, the fresh portfolio allocations they made were far from evenly distributed across asset classes. We explore these moves and what they may be thinking.
Being an investor during the third quarter of 2023 was challenging. Both equities and fixed income suffered concurrent losses for the first time since the equivalent period a year earlier. Amid such weak conditions, there may be an urge to withdraw to the side-lines. However, our experience suggests cutting through the noise and staying focused on a robust long-term investment plan. Our quarterly edition of Family Office Investment Report explores an important question against the backdrop of recent geopolitical and economic developments: what are some of the world’s most sophisticated investors doing with their portfolios?
Using data from our family office clients worldwide, we examine recent portfolio positioning and shifts at global and regional levels. We also discuss the findings in the context of Citi Global Wealth’s best thinking on tactical and strategic asset allocation and the macroeconomic and geopolitical environment.
Key takeaways from our Family Office Investment Report
For a third quarter running, the family offices that we serve put more of their cash to work. However, the fresh portfolio allocations that they made were far from evenly distributed across asset classes and regions. Once again, certain Investment Grade Fixed Income assets were in favor. The picture was more mixed in Global Equities, with family offices increasing and decreasing weightings in different regions. Where there were inflows into this asset class, activity focused on large cap companies in developed markets.
