Risk appetite is a matter of geography
After a year of improved investment performance, allocations to equities rose even further to account for Overall, the percentage of family offices that are pursuing a growth strategy has increased from 19 per cent to 36 per cent. However, strategic asset allocations reveal a high degree of regional dispersion.
The US family offices remains particularly optimistic, with a big move to ‘growth’ allocations. Emerging market participants have cut their ‘preservation’ allocations dramatically. This indicates that the worries of 2015 seem gone. In contrast, Europe is the standout negative, with its risk-off stance demonstrated by increased ‘preservation’ allocations and a cut in ‘growth’ allocations. Compared to last year family offices in Asia-Pacific are broadly unchanged and moderate optimistic.