Cash Dethroned: Asia’s Family Offices Shift Focus to Equities, Bonds, and Private Assets Amid Bullish Market Outlook

Family offices in Asia are moving away from cash and investing more in equities, bonds, and private assets. According to a survey, 68% of participants in the Asia-Pacific region increased their investments in stocks, marking the highest increase compared to other regions.

In the area, family offices were the most positive about the future of the stock market, with 68% of those surveyed increasing their share holdings. This is in contrast to 45% in Latin America and about a third in North America, Europe, and the Middle East and Africa (EMEA) regions.

The US bank expressed in its yearly Global Family Office Survey Insights report, which was published on Wednesday, that optimism was prevalent. Nearly all participants anticipated favorable portfolio returns within the forthcoming year, with nearly 50% predicting returns exceeding 10 percent.

Citigroup's private banking division carried out a survey from June 4 to July 15, attracting a record number of 338 responses on subjects like portfolio activities, investment mood, and industry top standards. Approximately 21 per cent of the individuals who responded are located in the Asia-Pacific region.

According to the survey, 42% of the participants from the region increased their investment in fixed income, a percentage that matches with family offices in North America. Nonetheless, the asset class was more popular among investors in Latin America and EMEA, with 55% and 59% respectively favoring it.