Future Priorities for Asian Family Offices: Emphasis on Next Generation Education
In a recent survey, a majority of family offices in the Asia-Pacific (APAC) region expressed optimism about their portfolio returns for the year, with 83% anticipating returns above 5%. However, these offices are largely holding their asset allocations steady, pending greater clarity on trade policy, as global trade disputes and U.S.-China relations continue to dominate investment strategies.
The region's family offices are showing resilience in the face of tariff turmoil, with a significant 39% favoring active management to bolster portfolio resilience following U.S. tariff announcements. Notably, APAC family offices are leading in allocating to defensive asset classes, geographies, and sectors.
The survey also revealed a growing adoption of technology, particularly artificial intelligence (AI). The proportion of respondents mentioning they had deployed AI has doubled since last year, with AI being used predominantly for automation of operational tasks and investment analytics. However, full integration is expected to take time.
The APAC family offices are also grappling with gaps in cybersecurity offerings, with 44% of respondents highlighting this as a potentially urgent area for development. As family offices consider external suppliers to manage growing responsibilities in a cost-efficient manner, operational risk management, cybersecurity, and leadership succession planning are identified as areas needing more improvement.
The survey further underscores the internationalization of APAC families, with 76% having a global footprint. Prominent families behind the most globally spread business activities in the region include those controlling large conglomerates and trading companies, such as the Wicaksana Group in Indonesia.
The 2025 Global Family Office Report echoes the concerns raised in the survey, with trade disputes and U.S.-China relations remaining the primary concerns for investment strategies. Alongside these, global trade disputes, a resurgence of inflation, and U.S.-China relations are top concerns for family offices.
For more information about the survey, please visit www.citigroup.com.
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