Despite heightened market volatility and short-term uncertainty, family offices remain steady in their investment approach, according to a new global survey by Goldman Sachs. The findings suggest long-term strategies are largely unchanged, even as geopolitical tensions and shifting trade policies dominate headlines.

Nearly two-thirds (61%) of respondents cited geopolitical conflict as their biggest risk, ahead of political instability and economic recession. Yet optimism persists, with family offices maintaining diversified allocations and showing readiness to deploy capital.

Public equities saw a notable increase in allocations, benefiting from market dislocations and strong performance relative to private equity, which dipped slightly compared to 2023. Meanwhile, allocations to yield-focused fixed income, private credit, real estate, and infrastructure edged higher. Family offices continue to hold around 12% in cash, but one-third plan to reduce cash levels over the next year to invest in risk assets.

Technology remains the favorite sector, with 58% of respondents expecting to overweight tech in the coming year, up 15 percentage points from 2023. AI adoption is widespread, with 86% reporting investments, primarily through public equities, though concerns linger over valuations and potential bubbles.

Cryptocurrency exposure remains limited but growing: 33% currently invest, more than double the 2021 figure, while 23% express future interest. The APAC region leads, with 39% showing intent to add crypto exposure.

Overall, the survey underscores a cautious but confident outlook: family offices are sticking to core strategies while preparing to seize opportunities in equities, technology, and alternative assets.

End Notes

Source: https://www.goldmansachs.com/pdfs/insights/articles/adapting-to-the-terrain/family-office-investment-insights-report.pdf