Family Office

Family Offices Optimistic On Financial Future - Survey

Tom Burroughes, Group Editor, 27 March 2020

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A new study points to how multi- and single-family offices in the US and Europe think about the current extraordinary economic situation, long-term investment ideas and how people have adjusted their daily working arrangements.

A study of 15 family offices from the US and Europe finds that more than half of them (60 per cent) expect financial markets to be stronger in 12 months from now and only a minority (13.3 per cent) think they will be unchanged. 

The study, conducted by familyofficehub.io, also found that 26.7 per cent of respondents expect a “slightly better situation” in financial markets versus where they are now. The report is another example of data showing how family offices’ fortunes have been affected. This publication, which is an exclusive media partner with data and research firm Highworth, has published detailed figures on how specific single family offices have been affected. (To register for the Highworth database, click here.)

Overall, 66.7 per cent of respondents expect the heaviest financial losses in financial markets, followed by 13.3 per cent who expect the heaviest losses in venture capital. The portfolios of the surveyed family offices performed better than most stock markets: 57.1 per cent of the participants experienced -10 per cent to zero losses from 25 February to 16 March. Only 7.1 per cent reported losses between -30 per cent and -20 per cent. 

Most family offices are already exploring investment opportunities, such as distressed equity or bonds. Many family offices target tech stocks (for example Facebook, Apple, Netflix, Google) as well as food companies. Others are preparing private equity purchases, the study showed.

“Many of the most experienced asset and wealth managers work in the family office environment. The investment strategies of established family offices are a blueprint for many asset managers. For this reason, it is of great interest to all players in the investment industry how family officers react to the recent crisis,” the report said. 
 

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