Global Family Offices Unfettered by Military Conflicts, Recession Fears

Core Insights - The investment strategies of ultra-rich family offices remain consistent despite market volatility and geopolitical tensions, with a focus on long-term wealth preservation and growth [2][4] - Family offices are particularly concerned about geopolitical conflicts, political instability, and economic recession, with a significant portion viewing the wars in Ukraine and Gaza, as well as US-China tensions, as risks [3][4] Asset Allocation Trends - The average family office allocates 31% of its assets to public equities, an increase from 28% in 2023, while private equity allocations have decreased from 26% to 21% [6] - Alternative assets make up 42% of total allocations, and 38% of family offices plan to increase their investments in public equities, indicating a strong appetite for risk [6] - Allocations to cash, fixed income, private real estate, infrastructure, hedge funds, private credit, and commodities have remained relatively stable [6] Regional Perspectives - Family offices in the Americas exhibit a positive outlook, with over a third not preparing for extreme market events, while those in Asia Pacific and EMEA show more caution, with only 12% and 14% respectively not positioned for tail risks [4] - The US remains the primary investment destination for family offices, followed by their home countries, highlighting a preference for geographic diversification [4]