Family offices to keep consistent allocations over next 12 months: Goldman Sachs survey Global family offices will remain consistent in their strategic allocations over the next 12 months amid growing concerns over geopolitical risks, though some are willing to increase their exposure to public and private equity, Goldman Sachs said in a survey published on Wednesday. Meena Flynn, co-head of global private wealth management at the US investment bank, said the global average asset allocation remained broadly consistent from 2023 to 2025, though respondents expressed concerns about geopolitical tensions and protectionist trade policies. Goldman surveyed 245 global family offices for its report. The family offices’ exposure to public equities rose to 31 per cent from 28 per cent in 2023, while alternatives edged down to 42 per cent from 44 per cent. Allocations to private real estate, infrastructure and private credit grew to 4 per cent from 3 per cent, underscoring demand for yields. Nearly half of respondents invested directly in private real estate, the survey said. The average allocation to private equity – which the survey defined as buyout, growth and venture capital funds – dropped to 21 per cent from 26 per cent. “Family offices continue to favour investment strategies that balance structural resilience with higher risk premia,” said Tony Pasquariello, Goldman’s global head of hedge fund coverage. “Their allocations to hedge funds and private markets reflect a long-term commitment to both preserve capital and position for growth.” In terms of sectors, 58 per cent of family offices reported being overweight on technology, with 86 per cent reporting some degree of exposure to artificial intelligence, mostly by way of public equities. A growing number of family offices were invested in cryptocurrencies – 33 per cent, up from 26 per cent two years ago – though 44 per cent of respondents said they had no interest. Some 61 per cent of respondents considered geopolitical conflicts to be their top risk, followed by political instability and economic recessions. More than half expected geopolitical risks to rise over the next year. “Family offices are signalling confidence in long-term growth while remaining disciplined in their approach,” said Sara Naison-Tarajano, the bank’s global head of private wealth management capital markets. “They’re prepared to stay the course, but also to lean into areas like private credit and public equities where they see compelling opportunities to generate returns.” Over the next 12 months, more than a third of respondents said they planned to reduce their cash balances and invest in riskier assets. Some 39 per cent planned to increase exposure to private equity, followed by public equities and private credit. Goldman Sachs’ latest survey was conducted from May 20 to June 18. It said 67 per cent of respondents had a net worth of at least US$1 billion. Of the respondents, 47 per cent were from the Americas region, with the remaining offices split between Asia and the Europe, Middle East and Africa region. https://www.scmp.com/business/article/3325078/family-offices-keep-consistent-allocations-over-next-12-months-goldman-sachs-survey (ICE HONG KONG)

Fonte notizia: South China Morning Post