Core Insights - The Hong Kong government announced a significant increase in the number of single-family offices, projecting over 3,380 by the end of 2025, representing an increase of approximately 680 offices and a growth rate exceeding 25% [1] Group 1: Market Growth - The research conducted by Deloitte indicates that single-family offices in Hong Kong directly employ over 10,000 full-time professionals, contributing approximately HKD 12.6 billion annually to the local economy [1] - The economic benefits are expected to be even more substantial when considering joint family offices and other service providers for family offices [1] Group 2: Government Initiatives - The Secretary for Financial Services and the Treasury, Christopher Hui, stated that the continuous growth in family offices reflects the effectiveness of the government's policy initiatives and institutional development [1] - The government plans to submit legislative proposals in the first half of the year to expand the eligible investment scope for funds and single-family offices under the preferential tax regime [1]

Group 1 - The core finding of the report indicates that the number of single-family offices in Hong Kong is projected to exceed 3,380 by the end of 2025, representing an increase of approximately 680 offices over two years, which is a growth rate of over 25% [1] - The research estimates that single-family offices in Hong Kong directly employ over 10,000 full-time professionals [1] - The operational expenditures of these family offices contribute approximately HKD 12.6 billion annually to the Hong Kong economy [1]

Core Insights - The global investment landscape is undergoing significant changes due to geopolitical divisions and policy-driven economies, prompting family offices to rethink their investment strategies [1] - A survey of 175 family offices managing over $300 billion in assets reveals their responses to geopolitical volatility and macroeconomic uncertainty [1] Geopolitical Influence - Family offices initially held a cautious view of the economy but became more pessimistic after April 3, with 62% expressing a negative outlook on the global economy [2] - 84% of family offices identified the current geopolitical landscape as a key challenge affecting their investment decisions, with 64% seeking to diversify their portfolios [2][4] Investment Strategy Adjustments - Prior to April 3, 72% of family offices had already adjusted or planned to adjust their investment allocations, with 94% actively seeking adjustment opportunities [2] - Post-April 3, family offices are less likely to make significant changes to their allocations due to policy uncertainty, focusing instead on tactical risk and opportunity assessments [4] Importance of Diversification - Diversification has become more critical, with traditional strategies failing as U.S. assets often move in sync [5] - Family offices are increasingly looking for uncorrelated sources of returns to enhance portfolio resilience [5] Alternative Investments - Alternative investments are gaining importance, with 72% of family offices citing high fees as a significant challenge [7] - Family offices are particularly interested in private credit, which constitutes 15%-30% of some portfolios, with over 51% optimistic about its prospects [11][13] Infrastructure Investments - Infrastructure investments are viewed positively, with 75% of family offices optimistic about this asset class, which offers inflation-linked returns and stable cash flows [15] - 30% of family offices plan to increase their infrastructure allocations by 2025-2026, aiming for a target of 10% by year-end [15] OCIO Model Adoption - Family offices are increasingly considering the Outsourced Chief Investment Officer (OCIO) model to streamline relationships with investment managers [17] - Approximately 22% of family offices have used or considered using OCIO services, with varying preferences based on generational involvement [17] AI Integration Challenges - Family offices are curious about AI but face barriers in implementation, including a lack of clarity on applications and concerns over data privacy [20] - Currently, 45% of family offices are more likely to invest in tech companies developing AI solutions rather than deploying AI internally [21] Future Outlook - Family offices recognize the potential of AI to enhance investment outcomes but acknowledge the need for further efforts to prepare for its integration [24]