Wealthy family investors around the world are sticking to their core strategies even as geopolitical tensions and trade policy uncertainty rise. A recent Goldman Sachs survey tracking 245 family offices globally shows that while risk is acknowledged, there’s strong conviction in long-term investment themes and a gradual reallocation toward growth opportunities.
Key Findings from the Survey
- Asset allocation changes are modest. Public equities now make up around 31% of portfolios on average, up from about 28% in 2023. Alternative investments — including private equity, real estate, infrastructure, hedge funds, and private credit — saw a slight decline, moving from roughly 44% to 42%. Fixed income also ticked upward, while cash allocations remain substantial but with plans to reduce.
- Risk under watch. Geopolitical conflict is the top concern cited by respondents. Political instability and economic recession follow close behind. Many family offices are preparing for impacts from trade wars, heightened tariffs, or currency fluctuations.
- Where investors are leaning. Over the coming year, many family offices plan to increase exposure to private equity, public equities, and private credit. There’s a clear appetite to take on more risk in areas seen as growth-oriented or under-leveraged.
- Technology and AI remain central. A strong majority have exposure to artificial intelligence, largely through public stocks, but also via private companies. More than half plan to overweight technology in their upcoming portfolio adjustments.
- Crypto in cautious ascent. Cryptocurrencies are increasingly on the radar: about one-third of respondents hold them. But they are not yet viewed as core parts of portfolios; many treat crypto more like a speculative or risk-mitigating holding rather than a foundational asset class.
Regional Differences
- Family offices in the Americas and Europe/Middle East/Africa tend to allocate more heavily to alternative assets and private equity than those in Asia-Pacific.
- In APAC, there is somewhat more caution, reflected in higher cash reserves and a lower share invested in illiquid alternative or private markets. Risk-averseness in APAC is partly attributed to regional geopolitical concerns and regulatory uncertainty.
What It Means & What to Watch
- The survey indicates that while there is concern about risks — from wars, currency swings, protectionism, or inflation — family offices are not pulling back drastically from risk. Instead, they are reallocating gradually, leaning toward sectors and asset types that offer both growth and a degree of resilience.
- Investors will be watching upcoming economic data: inflation trends, rate movements, supply-chain disruptions, and how well tech/AI-related businesses continue to perform.
- How family offices manage liquidity, lock-in periods for private assets, and exposure to stakes in early-stage or less transparent investments will be critical in navigating volatility.
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