In all the changes in allocations, the main loser was the equities market.

Family offices based in the Caribbean region and Mauritius have pulled out of equities and moved into areas such as fixed income, private markets and cryptocurrencies in the wake of US trade tariffs in April this year, a survey finds. 

Ocorian, a specialist provider of services to HNW individuals and family offices, published a survey, based on work from research firm PureProfile, taken from people in the family office sector – including family members. Collectively, those polled hold or manage $8.75 billion of assets. Those questioned include respondents in Bermuda, the Cayman Islands and Mauritius. The findings are part of a global study covering 200 people.

Equities are the main losers from the change in allocations – 44 per cent questioned in Bermuda, the Cayman Islands and Mauritius have moved funds out of equities into fixed income following the launch of tariffs.

“Family offices in the Caribbean have reacted quickly to protect their wealth following the global disruption caused by the US tariffs in financial markets,” Simona Watkis, head of private client – Cayman, at Ocorian said. “The major effect has been an increase in allocations to private markets from both fixed income and equities with equities also losing out to fixed income. Increased volatility and, in many cases investment losses, is driving a flight to relative safety with private markets less exposed to volatility.”

More than one in five (22 per cent) have increased allocations to digital and crypto assets following the uncertainty caused by the imposition of tariffs by the Trump administration, Ocorian said. 

US tariffs have increased equity volatility – a major consideration for family offices. Around 78 per cent questioned cited those issues as the main impact of tariffs while 56 per cent said investment strategies had been hit and had suffered significant losses.

Around a fifth (22 per cent) said the imposition of tariffs had dramatically reduced their appetite for investment risk while the same number said it encouraged them to move more of their assets to more stable jurisdictions.