Asia’s family offices expect over 5% returns


Possible drivers of the positive sentiment include potential US deregulation and interest rate cuts as well as advancements in artificial intelligence. — The Straits Times

SINGAPORE: Family offices in the Asia-Pacific region hold an optimistic outlook in 2025, with 83% of them expecting returns exceeding 5% despite market volatility, a report says.

Possible drivers of this positive sentiment include potential US deregulation and interest rate cuts, as well as advancements in artificial intelligence, said the report released on Tuesday.

This comes as 61% of the family offices in the region highlighted trade disputes and 53% indicated US-China relations as their primary concerns related to investment strategies.

A family office is a private company that manages wealth and investments for a family or group of families.

The findings are from a global survey conducted by Citi Wealth from June to July, which polled 346 family offices in 45 countries. About 30% surveyed were based in the Asia-Pacific region.

The number of single-family offices in Singapore grew from about 400 in 2020 to more than 2,000 by the end of 2024. Meanwhile, 9% of the world’s family offices are located in Asia, according to a 2023 report.

Public equities remain the largest individual asset class within allocations worldwide. — The Straits Times/ANN

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