Family offices have boomed in the last few years, thanks in part to the growing number of wealthy individuals. There’s been a surge in “extreme” wealth in the last three years alone. In the United States, billionaires are 46% richer than they were in 2020, according to a new Oxfam report . An Economist Intelligence Unit study showed that the combined holdings of billionaire populations jumped by over 10% in 2019 — reaching $9.4 trillion — with Asia showing the highest percentage jump in the number of billionaires. The ultra-high net worth population overall declined in Asia last year, but rose in India, while Europe and America recorded smaller declines, a 2023 study showed. The combined net worth of Asia’s super rich population was at $12.13 trillion, above Europe’s $11.73 trillion, according to the report. Family offices typically cater to investors with $100 million or more in net worth. According to a 2023 study by KPMG, 26% of family offices most commonly manage between $251 million and $500 million in assets, while 6% manage over $5 billion. A 2022 report citing various estimates said that family offices were managing more than $6 trillion in wealth. UBS told CNBC Pro that “family offices are planning the biggest modifications in strategic asset allocation for several years,” adding that this comes “at a time when inflection points spanning policy rates, inflation and economic growth appear likely.” CNBC Pro scoured recent surveys and spoke to family office operators to find out how they’re allocating right now and in the next few years — in the face of major global shifts. Fixed income versus stocks UBS says the current trend among family offices is a return to fixed income as a diversifier, although stocks in developed markets remain the most important asset class. “Currently, the most favored diversification strategy globally is high-quality short-duration fixed income,” said the bank, adding that family offices are planning to buy more developed…
2024-02-01 18:58:00
All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator