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Laxman Pai, Opalesque Asia: Family offices are investing more in private assets and cutting back on investments in public markets, with higher risk-adjusted returns cited as the main driver, said a study.
According to the survey findings by German digital private equity firm Moonfare, and the UK-based association Global Partnership of Family Offices, around 58% of responding family offices have increased their allocations to private markets in the past two years. Just under a fifth of all surveyed have done so significantly.
"More than half the survey respondents have a positive outlook on private market assets over the next year while 70% hold a negative view on stocks and bonds," it said.
By contrast, the survey found, interest in traditional public equities has waned, with well over 50% of respondents saying they have reduced exposure to both public equity and fixed income.
Roughly a quarter of family offices identified exploring new asset classes as a priority when it comes to adjusting their investment process in the future.
More than 80% of respondents note both the potential for higher risk-adjusted returns and the ability to become a value-add investor as significant benefits of private equity.
"Among wealth managers, family offices face a unique challenge of marrying long-term investment goals with the existing family's values. This combination has come under the spotlight recently in part due to two key changes; namely, the shift in the economic...................... To view our full article Click here
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