An annual survey by the US banking group highlights that family offices in Latin America recorded the highest proportion of portfolio increases of any region and expect portfolio gains in 2025.

Citi Private Bank’s Global Family Office Group yesterday released the results of its Family Office Survey 2024 , which provides insight into the thinking and behavior of some of the world’s most sophisticated investors – the family office client segment. In an environment of ongoing market volatility and geopolitical challenges, the report outlines key challenges and potential areas of opportunity for the coming year.

The survey brings together investment sentiment, portfolio positioning, corporate governance and best practices of these clients in 2024.

“We are delighted to share the results of this year’s survey, which provide an inside look at the priorities of some of the world’s most diverse and sophisticated family offices,” said Hannes Hofmann, Head of the Global Family Office Group at Citi Private Bank.

“Over the past two years, we have seen the number of responses grow from 126 to 338 globally, indicating an increased need for unique perspectives on the key challenges and opportunities facing family offices today. The wide variety of questions covers the most current global issues and reflects significant shifts in respondents’ concerns and interests. We look forward to continuing our close collaboration with family offices to provide access to all areas of Citi that support the ambitious goals and needs of the world’s most global and sophisticated investors.”

LATIN AMERICA IN FOCUS

In addition to global themes and revelations, there are several key findings specific to Latin America:

- Family offices are following the global trend and putting their money to work by reorienting their liquid assets portfolio towards fixed-income securities, public and private equity; the greatest interest (48%) was in investment-grade fixed-income securities.

- Optimism continues among family offices regarding portfolio performance prospects over the next twelve months, with all respondents in the region expecting positive returns.

- The future path of interest rates was one of the main concerns (55%). The region also showed the greatest concern about inflation (48%) compared to other regions.

- Promoting family unity and continuity was among the most cited focus areas by respondents (49%), demonstrating the highest level of concern for preparing the next generation (70%). Family offices also expressed that they face the greatest challenge in meeting the needs and expectations of family members (74%).

- Regarding portfolio exposure to artificial intelligence, 83% of Latin American respondents are not yet prioritizing allocating resources to this area. Likewise, the adoption of this technology in family office operations is still lagging.

- Latin American households (76%) were the most international compared to other regions: they were more likely to hold assets in multiple countries and had the highest proportion of members residing in different countries (84%).

“Our family office clients are becoming increasingly global as they seek to create and preserve wealth in an environment of new market challenges and opportunities,” said Ida Liu, Head of Citi Private Bank.

“As interest rates evolve and geopolitical challenges persist, ultra-high net worth investors and their families are putting cash to work and reorienting their portfolios toward public and private equity securities. Family offices are looking to the future as they navigate evolving markets around the world.”

GLOBAL TOPICS

This year’s Global Family Office Survey Insights Report revealed a shift in portfolio allocations, with government equities and fixed income seeing their weightings increase from 22% to 28% and from 16% to 18%.

Portfolio allocation to private equity fell from 22% to 17%, which may have been accentuated by valuations taking longer to adjust upwards compared to those in the public equity segment. North America received the highest overall weighted allocations (60%), followed by Europe (16%) and Asia Pacific excluding China (12%).

Allocations to China were nearly halved from 8% to 5% compared with last year due to the country's continued economic challenges and market unrest. North America's share of allocations rose from 57% a year earlier, driven by a strong equity market.

OTHER GLOBAL HIGHLIGHTS

- Family offices are putting their money to work by making significant changes to their portfolio, moving from liquid assets to fixed income, public equity and private equity.

- Family offices remain optimistic about the prospects for portfolio performance over the next twelve months, with 97% of respondents expecting positive returns.

- The future path of interest rates is the main concern, followed by geopolitical issues such as US-China relations and the conflict in the Middle East.

- Family offices are increasing their portfolio exposure to artificial intelligence, which likely contributed to strong returns over the past year. However, adoption of this technology in the operations of this client segment is still lagging.

- Preserving assets and preparing the next generation for future responsibilities are the main concerns of families. Meeting the expectations of family members is considered the main challenge for family offices.

“While family offices are inherently unique, our survey indicates there are many commonalities around their concerns and behaviors,” explains Alexandre Monnier, Family Office Advisory Head of Global Family Office Group. “Findings like these reveal the new ways in which family offices are managing their wealth – through portfolio diversification and sophisticated investment approaches – and preparing to achieve both their financial goals and the well-being of their families.”

This year’s survey was launched during Citi Private Bank’s ninth Family Office Leadership Program, held in June 2024. It was subsequently shared with all Citi Private Bank family office clients for their participation. Notably, it included 50 questions aimed at understanding those clients’ investment sentiment, portfolio positioning, family corporate governance, and best practices. Responses were obtained from 338 participants and were included in this report.