Global Family Office Report 2019

Welcome to the sixth edition of the Global Family Office Report, produced in partnership with Campden Wealth Research. 

Our 2019 Global Family Office Report reveals the latest survey results on the performance and insights from 360 family offices globally.

For the first time, family offices also shared their views on broader issues – spanning politics, the economy and climate change. Another new section is dedicated to regional trends for family offices in North America, Europe, Asia-Pacific, and the Emerging Markets.


Explore the data

In the 2019 Global Family Office Report, 360 online surveys and 25 qualitative interviews were conducted with family offices from around the world between February and May 2019.

 

Cash or equivalent

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  • Global Performance

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Europe

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126 Total

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Succession Planning

*Remaining percent responded that they don't know.

North America

Compare regions

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126 Total

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*Remaining percent responded that they don't know.

Asia Pacific

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126 Total

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Succession Planning

*Remaining percent responded that they don't know.

Emerging Markets

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126 Total

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Succession Planning

*Remaining percent responded that they don't know.

Source: The UBS / Campden Wealth Global Family Office Report 2019
Note: Figures may not total 100% due to rounding.


Key insights

MARKETS Recession fears loom

55% of family offices believe we will enter a recession by 2020. In preparation for the next economic downturn, 45% are realigning their investment strategies to mitigate risk, while 42% are increasing their cash reserves.

INVESTMENT Returns fade

Based on self-reported returns, family offices' overall investment performance fell over the last year, with the average portfolio globally returning 5.4%. Family offices in Asia-Pacific and the Emerging Markets had the highest average returns at 6.2%, followed by North America at 5.9% and Europe at 4.3%.

SUCCESSION Life begins at forty!

The average age a next generation member assumes control of the family enterprise is 45 years old, with 62% of all Next Gens being 40 or older at the time of succession.

EQUITIES Slowing down

Taking a dive from last year, developed market equities produced an average return of 2.1% falling 5.2 percentage points below expectations. Developed market equities returned -1.1%, trailing 10 percentage points behind expectations.

PRIVATE EQUITY Outshines

Private equity fared the best of all asset classes in 2019, achieving an average return of 16% for direct and 11% for funds-based investing.

SUSTAINABLE INVESTING Sowing the seeds

34% of family offices now engage in sustainable investing, with 19% of the average portfolio dedicated to sustainable investing. It is predicted that this average portfolio share will increase to 32% within the next five years.

CYBER SECURITY 1 in 5 on the hook

20% of family offices have knowingly experienced a cyber security attack. The most common forms of attacks are phishing (76%), malware (33%), and social engineering (33%).

REAL ESTATE Gains momentum

Real estate gained the greatest traction this year, with allocations rising more than any other asset class, by 2.1 percentage points. The average return stood at 9.4%.

TECHNOLOGY Disruptive forces: AI & Blockchain

87% of respondents agree that artificial intelligence will be the next biggest disruptive force in global business, while 57% agree that blockchain technology will fundamentally change the way we invest.