Family Office News Asia

Category: Report

  • Hong Kong Set to Benefit as Family Office Hub Amid Surge in ESG Investments

    Hong Kong Set to Benefit as Family Office Hub Amid Surge in ESG Investments

    Hong Kong is positioned to gain as a family office hub and impact investment center as wealthy families increasingly embrace environmental, social and governance (ESG) investments, industry observers said.

    A new survey showed ESG investments account for at least half the portfolio of nearly 20% of family offices globally, while 60% of these wealth management entities have allocated at least 10% of their investments to ESG-related projects.

    The findings, released by the Hong Kong-based Sustainable Finance Initiative (SFI), suggest family offices – entities established by wealthy families to manage investments, succession planning and philanthropy – are demonstrating “real and genuine commitment to sustainable investment,” said SFI CEO Katy Yung.

    “These figures demonstrate that family offices have not only maintained their focus, but have also refined their strategies to capture the twin benefits of social impact and robust returns,” Yung said.

    The survey of 144 family office representatives from 15 countries was conducted during SFI’s Impact Summit in Hong Kong in May.

    Hong Kong’s status as a financial hub stands to benefit from this trend, according to Tom Chan Pak-lam, permanent honourable president of the Institute of Securities Dealers.

    “The Hong Kong government has been promoting both family offices and sustainable investments in the city in recent years,” Chan said, noting that mandatory ESG disclosures by all listed companies make it easier for family offices to identify impact investment targets.

    The city’s stock market surge – with the Hang Seng Index up 29% this year following an 18% gain last year – has enhanced its appeal.

    Hong Kong also reclaimed its position as the world’s largest initial public offering market in the first eight months of 2025.

    Family offices are increasingly prioritizing nature-based solutions such as reforestation and regenerative agriculture, the survey showed. Food and agriculture dropped to second place from last year’s top ranking, while healthcare came third.

    The Asia-Pacific region emerged as the preferred investment destination for 42% of family offices, followed by Africa at 16% and Europe and North America at 15% each.

    Two-thirds of family offices expect to achieve their sustainable investment goals this year, though 37% anticipate missing their targets.

    For ESG investments, family offices favor alternative strategies, with 25% preferring private equity, 22% choosing direct investments, and the remainder using grants and loans, according to the survey.

    FamilyOfficeNewsAsia.com

  • Asia-Pacific Family Offices Tilt Toward Growth as AUM Hits $50bn – Report

    Asia-Pacific Family Offices Tilt Toward Growth as AUM Hits $50bn – Report

    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