Global Family Office Report 2018

Welcome to the fifth edition of the annual Global Family Office Report series.

Since its inception in 2014, this report provides the most comprehensive analysis of family offices’ investment practices, operational costs, philanthropic giving and plans for succession, to the private wealth community globally.

The report is produced by Campden Wealth in partnership with UBS.


Explore the data

In the 2018 Global Family Office Report, 311 online surveys and 25 qualitative interviews were conducted with family offices from around the world between February and May 2018.

 

Cash or equivalent

    Cash or equivalent

      • Benchmark return 2017
      • Expected return 2017
      • Performance versus expectation

      Select region

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      Europe

      Compare regions

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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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              Succession Planning

              *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 2018
                      Note: Figures may not total 100% due to rounding.


                      Key insights

                      Growth accelerated rapidly since the millennium

                      Two-thirds of responding family offices were established in 2000 or later, while a third now have two or more branches globally. Over half of family offices reported that their assets under management are growing as is the wealth of the families they serve.

                      A record breaking year


                      Family offices’ investment performance experienced a remarkable year, with the average portfolio return hitting 15.5% in 2017 - up from 7.0% in 2016 and 0.3% in 2015.

                      Private equity continues to climb

                      Heralding a significant average return of 18% in 2017. Allocations to private equity continue to climb and now account for 22% of the average family office portfolio globally.

                      Impact investing is heating up

                      A third of family offices are now engaged in impact investing – a rise of 4.2 percentage points over the year – with the most common vehicle for investing being via private equity.

                      Managing wealth with purpose

                      38% of family offices are involved in sustainable investing, with the most commonly invested in areas being clean energy, water, gender equality and healthcare. Nearly half plan to increase their sustainable investments over the next 12 months.

                      Unique asset allocation profiles across all regions

                      Family offices in North America tend to favour investment into developed market equities (27% vs. 22% globally) and private equity funds (9.9% vs. 7.6% globally). Those in Europe opt most often for alternatives which account for 50% of their average portfolio. Asia-Pacific based family offices favour developing market equities (14% vs. 6% globally), while those in the Emerging Markets prefer bonds (24% vs. 16% globally).

                      Increased exposure to real estate

                      Family offices have increased their exposure to real estate direct investments by 2.3 percentage points over the year to total 17% of the average family office portfolio. This is aided by a preference across Europe for real estate investments, which account for 23% of their average family office portfolio.

                      Hedge funds' allocations trimmed again

                      Allocations to hedge funds have been falling since at least 2015, with this year being witness to a 3.2 percentage point decline. Hedge funds now account for just 5.7% of the average family office portfolio.

                      Next Generation begins to come onboard

                      Nearly a third (29%) of respondents reported that the next generation already hold management or executive positions in the family office, while a quarter (23%) reported that they sit on the board.