We find four predominant themes worth mentioning following a close review of the responses:
- Concern on rising Inflation topped the list of respondents’ worries over the next 12 months, with nearly 30% indicating that to be their utmost concern in the current climate.
- High cash levels in the face of a low-yield environment were also noted, with 32% of family office respondents holding over 20% in cash and highly liquid assets.
- Continued growth in portfolio allocation to direct private investment opportunities was observed with 44% of family offices allocating over 25% of their portfolio.
- A remarkable comeback in portfolio values year over year in a period of high degree of uncertainty with over half reporting an increase greater than 10% a far cry from last year where only 3% reported similar gains.
Other notable observations made by us also include:
- Gradual but less than expected interest in sustainable investing and portfolio alignment with ESG or ‘Environmental, Social and Governance’ principles
- An expected mix of interest coupled a high degree of skepticism in crypto assets
The findings have been elaborated upon by Stephen Campbell, Chairman, and James Holder, Global Head, of Citi Private Capital Group. Their observations are accompanied by analysis and commentary from our Chief Investment Officer David Bailin and Chief Investment Strategist Steven Wieting.
We hope this year’s survey report proves to be an insightful read. As ever, we welcome your feedback.