Main findings:
-
58% of family offices in the Asia-Pacific region reported
increase in Assets under management(with 32% reporting an increase of more than 10%) versus 18% reporting a decrease. -
Around 15% of family offices in APAC have the
the next generation in charge. Only
56% feel well prepared for
Succession. Only 44% believe their next generations are sufficiently prepared. -
The most popular asset class for future investments is
real estatewith 22% increasing exposure and 39% intending to increase their allocations, bucking the global trend. -
45% of family offices agree with the statement that
blockchain technology will create substantial value. -
On net, 32% of family offices are actively seeking to increase their engagement in
artificial intelligence.
HONG KONG SAR and SINGAPORE – Media OutReach Newswire – December 13, 2023 – Family offices in the Asia Pacific (APAC) region have demonstrated remarkable resilience and adaptability in adapting to an ever-changing financial landscape evolution.
Asia Pacific Family Office Report 2023, an in-depth investigation carried out by
Raffles Family Office And
Wealth Campdenfound.
Majority of APAC family offices report asset growth
The report reveals that 58% of family offices in the Asia-Pacific region reported an increase in assets under management (AUM). Family offices in the region have adopted innovative asset allocation strategies to counter the impact of inflation and rising rates, including shortening the duration of fixed income bond portfolios, reducing borrowing and increasing exposure to equities.
Mr. Chi-man Kwan, Group CEO and Co-Founder of Raffles Family Office, said:
“Family offices in the Asia-Pacific region are evolving at a remarkable pace. Our report highlights the resilience and adaptability of these family offices, particularly in terms of asset allocation and technology adoption.
The numbers of generational change and succession planning mean profound change
Currently, around 15% of family offices in the APAC region are under next generation control. Over the next five years, this figure is expected to rise to 47%, a sign of a significant generational shift. Despite these changes, only 56% of family offices feel well prepared for succession.
“This shift signifies a profound shift in the region’s investment and management strategies, opening a new chapter for family offices in Asia Pacific. »
Mr. Kwan added.
Real estate leads private investments as family offices continue to embrace technology
Real estate is emerging as the preferred asset class for future investments, with 39% of APAC family offices intending to increase their allocations.
Additionally, 32% plan to boost investment in private debt, reflecting diversified investment approaches.
Artificial intelligence (AI) stands out as the most sought-after new technology, with a net 32% of family offices actively seeking increased engagement. Remarkably, 45% of family offices agree that blockchain technologies will create substantial value.
Place for efficiency and communication
From an operational perspective, the report found that the adoption of relatively new wealth aggregation platforms, capable of providing insight into an organization’s financial situation by consolidating data from multiple banks and asset managers investment, is still relatively low. Currently, only 30% of family offices express interest in leveraging these platforms, but this is expected to increase rapidly.
Adam Ratner, Director of Research at Campden Wealth, said:
“Family offices recognize the potential value of wealth aggregation platforms tailored to their needs. However, the initial slow adoption can be better attributed to the newness of these tools and their high cost.
This report is based on a statistical analysis of 330 survey responses from private (non-commercial) single family offices and multi-family offices worldwide. On average, families in the Asia-Pacific region participating in the survey had a total wealth of $0.9 billion, and their collective wealth stood at $68 billion. Their family offices had an average of US$0.5 billion in assets under management, while overall assets under management stood at US$41 billion. Download the full report at:
https://www.rafflesgroup.co/
https://hk.linkedin.com/company/raffles-family-office
Wechat: Wanfang Family Office
Hashtag: #BureauFamily #BureauFamilyRaffles
The issuer is solely responsible for the content of this announcement.
