Citi Private Bank: Bullish Family Offices Shift from Cash to Equities, FI

The Global Family Office 2024 Survey by Citi Private Bank reveals a shift in investment strategies, as family offices reposition portfolios from cash into fixed income and both public and private equity. 

Nearly half of respondents (49%) have increased their allocations to fixed income, while 43% boosted their exposure to equities, signaling a broader trend of putting cash to work. This repositioning comes with an almost universal expectation of portfolio appreciation over the next 12 months, with nearly half of respondents anticipating returns exceeding 10%. Optimism is especially strong in Asia, where 68% of respondents increased their public equity investments.

Private equity continues to attract attention, with 75% of family offices engaging in direct private equity deals. Alongside these investment shifts, the report highlights rising interest in artificial intelligence, with 53% of family offices incorporating AI into their portfolios.

This year's survey underscores a strategic realignment as wealthy families capitalize on favorable market conditions, with expectations for further growth in 2024. Meanwhile, interest rate evolution has emerged as the top financial worry, overtaking inflation for the first time since 2021.

View the survey report here.

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