Asia-Pacific family offices are increasingly shifting towards growth-focused investment strategies as assets under management in the region reached $50 billion, according to the Asia-Pacific Family Office Report 2024 by Campden Wealth and BNP Paribas Wealth Management.
The survey of 76 family offices across the region found that more than 40% expect investment returns above 10% this year, supported by optimism over U.S. interest rate cuts and Beijing’s stimulus measures.
Indian, Chinese and Japanese equities, as well as themes such as defence, cybersecurity and artificial intelligence, topped near- and medium-term preferences.
Almost 60% of Asia-Pacific family offices now pursue balanced strategies, though many signal a pivot toward growth over the next five years as rising second-generation leadership drives higher return targets.
“Families can reasonably be expected to double in size every generation,” the report noted, adding that sustaining per capita wealth requires real growth of about 2.5% annually.
Private equity remains the favoured source of risk-adjusted returns, but higher rates and delayed exits have dampened enthusiasm.
By contrast, private credit has gained traction, with lending rates seen as sufficient compensation for default risks. Real estate still accounts for 15% of portfolios, but sentiment is weighed by high vacancy rates in China and Hong Kong.
Philanthropy and responsible investing also play a growing role, with three-quarters of Asia-Pacific family offices making average donations of $4 million and more than half engaged in impact investing.
Despite concerns over delayed U.S. Federal Reserve easing, the U.S. election and China’s real estate crisis, 85% of respondents said they were satisfied with their offices’ investment management performance.
FamilyOfficeNewsAsia.com
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