SUMMARY
Family office clients shifted somewhat out of cash and into other asset classes in the three months to June. We explore these moves and what they may be thinking.
This second quarterly edition of Family Office Investment Report explores an important question against the backdrop of recent geopolitical and economic developments: amid today’s often conflicting market signals, what are some of the world’s most sophisticated investors doing with their portfolios?
Using data from our family office clients worldwide, this report summarizes recent portfolio positioning and shifts at global and regional levels. It also examines this activity in light of Citi Global Wealth’s short- and long-term asset allocations.
Key takeaways from our Family Office Investment Report
To date, 2023 has surprised to the upside. The most widely forecasted recession in history has so far failed to appear. Stubbornly high inflation in many places has begun to retreat in the face of ongoing rate hikes from global central banks. Global equities have pressed higher, adding a further 6.3% in the second quarter of 2023. Again, the technology sector powered ahead.
In this environment, family offices put more of their cash to work on average. In every region, allocations to fixed income rose, with high quality fixed income such as Investment Grade and US Treasuries now offering income that they have not for many years. And while there was a slight retreat from equities overall, we saw increased allocations to Private Equity, Real Estate and Hedge Funds in most regions.
To learn more, download our Q2 2023 report.
