BlackRock has today published the findings of its Global Family Office Report, titled Seizing opportunities in times of change.
The bi-annual study surveyed 120 single family offices with a total AUM of USD243 billion.
Compared to the study two years prior, nearly twice as many respondents (46%) intend to make changes to their investment strategy or portfolio than in 2020 (23%), citing heightened volatility, rising inflation and interest rates, and geopolitical tension. Some family offices are rebalancing their portfolios away from illiquid assets to capture opportunities in the public markets, while others are focused on private assets to generate returns.
Other highlights include:
- Higher rates have fundamentally changed fixed income and cash markets; geopolitical volatility and supply chain constraints have compelled investors to reassess their geographic exposures; and a growth slowdown and higher market volatility have led many investors to re-evaluate their growth exposure across public and private markets.
- Family offices are pursuing more tactical opportunities to capture alpha from an evolving market landscape, which is driving more frequent portfolio reviews and external input.
- High-return alternative investments continue to be a focus, but family offices are looking to diversify their private market allocations.
- Family offices are seeking external resources to unlock opportunities.