|
|
B. G., Opalesque Geneva: Family offices are reducing fixed income allocations and increasing investments in private equity, real estate, and private debt, sacrificing liquidity for returns, according to a recent report by UBS.
Family offices globally are in a new era of strategic asset allocation (SAA) as high inflation, central bank liquidity and rising interest rates compel them to review their investment options, the report says.
42% plan to increase direct private equity allocations, while 38% intend to raise investments in private equity funds and funds of funds. Real estate is favoured by 37%, while 27% are turning to private debt. A third of the average family office portfolio was allocated to equities in 2021, 15% to fixed income, 12% to real estate, and 2% to private debt.
Private equity has continued its steady rise, from a 16% average allocation in 2019 (including funds and direct investments) to 21% in 2021.
Over the next five years, almost a third of family offices plan to decrease investments in developed market fixed income.
"Family offices are keeping pace with a period of substantial transformation. In response to the COVID-19 pandemic, digital disruption and now a war in Ukraine, they are reviewing their options with greater urgency, as a strategic shift towards additional sources of return and alternative diversifiers gains ground," said Joe Stadler, executive vice chairman at UBS Global Wealth Management. "Against challenging ma...................... To view our full article Click here
|
|
RSS
