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FUNDRAISING NEWS | December 04, 2024
Tags: Investment Insights, RIA
The year 2024 is shaping up to be a good one for family offices in Europe, with a majority bullish on their investment returns, according to Campden Wealth and HSBC Global Private Banking’s latest European Family Office Report.
The report, released December 2, is the result of a survey conducted between March and June of single-family and multifamily offices in Europe with combined wealth of $186B. Among the respondents, 28% said they expect to generate a return of over 10% from their investments for the year, 57% anticipate returns in the 5% to 9% range and 12% expect returns of less than 5%. Meanwhile, only 1% said they expect a loss.
"Investors are bullish and we think they are right; CEOs sounded optimistic in the Q2 earnings season and the central bank rate cuts provide a second tail wind for markets. As of early November, diversified portfolios with a moderate risk profile had already returned 13[%] in the year to date, so it is no surprise that 28[%] of people are looking for more than 10[%] returns on their investments for 2024," HSBC Global Private Banking Global CIO Willem Sels commented.
Campden Wealth CEO Dominic Samuelson attributed the widespread optimism to the commendable performance of stock markets both in Europe and the US despite episodes of volatility in financial markets over the past few years.
At the time of the survey, concerns were high among investors, considering the high-interest-rate environment and geopolitical tensions in many parts of the world. Particularly in the US, the sticky inflation made markets worry that the US Federal Reserve would not be able to ease monetary policy, which factored into the considerations of family offices in Europe since more than a third of their assets are in North America, according to the report. However, as the year progressed, conditions did improve in some areas, with the Fed easing interest rates, most recently in November to a federal funds rate of 4.5%.
Looking ahead, European family offices are keen on investing in artificial intelligence-themed opportunities. In the near term, investment targets also include defense industries, cybersecurity, semiconductors and the Magnificent Seven technology stocks Tesla, Meta Platforms, Microsoft, Alphabet, Amazon.com, Apple and Nvidia.
Source: https://campdenfb.com/article/the-european-family-office-landscape-report-2024
Written By: Dakota
October 16, 2024
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