Family office investments

Family offices are rotating out of cash and bonds, and are instead upping their investments in equities and real estate, according to research.

The study by fund management firm Somerset Capital, which surveyed 51 family offices – predominantly from Europe – earlier this year, found 48% planned to increase their allocation to equities in 2013. Half of respondents said they wanted to boost their investments in real estate, while 46% were looking to bolster their private equity allocations.

External asset advisers are benefiting from a growing distrust among wealthy families in big banks, according to a director at financial research firm Cerulli Associates.



Following the 2008/2009 financial crisis, Bing Waldert reckons the wealthy are increasingly using multi family offices to manage their money – and MFOs in turn are making use of external asset advisers. 
 

For most people, exchange traded funds are all about beta. And since Lehman Brothers vanished in a puff of smoke four years ago beta is what a lot of people have been happy with: protecting wealth has been the name of the game.

Private equity and infrastructure will become the most popular investment areas for ultra-high net worth individuals and families, according to a member of a leading multi family office.

Rick Pitcairn, chief investment officer of US-based Pitcairn and a founding member of Wigmore Association, told CampdenFB: “We are convinced that UHNW investors will increase allocations to various kinds of private equity opportunities over the coming months.”