Global Family Office 2024 Survey Insights | Citi Private Bank

Family offices worldwide shift investments to risk assets with optimism about returns and portfolio growth.

Family offices have increasingly moved cash into public and private equity in 2024, reflecting optimism in global markets. Fixed income has also seen a notable increase in allocations, with nearly half of respondents boosting their exposure. Despite this, real estate allocations remained stable, demonstrating a careful balancing act in volatile times.

With near-unanimous expectations of positive portfolio returns, 97% of respondents foresee gains in the next 12 months, a slight increase from last year. Almost half expect returns of over 10%, further indicating confidence in market growth. However, interest rates and geopolitical issues, especially US-China relations, remain key concerns.

Many family offices are professionalizing their operations, with a growing emphasis on alternative investments, including private equity and direct investments. Notably, 60% now have dedicated CIOs and investment committees in place. The evolution of interest rates emerged as the top financial concern, overtaking inflation worries from previous years.

The report also highlights the rising importance of governance, risk management, and the adoption of artificial intelligence in portfolio management. However, the integration of AI into operations is still limited, with only 10% of family offices utilizing it for business tasks.

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