The landscape of wealth management is continuously evolving, and family offices are at the forefront of these changes. As highlighted in the recent UBS Global Family Office Report 2024, family offices have made some of the most significant shifts in asset allocation seen in years.
At Finco Trust, we understand how critical it is for families and businesses to stay ahead of market trends, particularly in uncertain times. In this article, we explore the strategic moves family offices are making and how our tailored solutions can support wealth management strategies amid these changes.
1. A New Focus on Fixed Income Investments
One of the most notable shifts in the 2024 UBS report is the increased allocation to fixed income, with family offices boosting their investments in this asset class by the largest margin in five years. This shift reflects both the rising bond yields in developed markets and a growing appetite for stability in the face of global volatility.
At Finco we comprehensive portfolio management services that are designed to help clients take advantage of these trends. Our team ensures that portfolios remain balanced, incorporating high-quality, short-duration fixed income investments to provide both income and risk diversification. For families seeking security and steady growth in an era of fluctuating interest rates, fixed income has once again become an attractive option.
2. Private Equity and Real Estate: Diversifying for the Future
While the report indicates a reduction in real estate allocations, there is sustained interest in private equity, particularly in funds and direct investments. Family offices are increasingly diversifying into these asset classes to capitalise on long-term growth potential, with many opting for direct ownership of real estate properties or private businesses.
Our trusteeship and investment advisory services help families explore private equity opportunities that align with their long-term goals. Whether it’s structuring direct investments or co-investments in private ventures, we provide the strategic advice needed to navigate these complex markets.
3. The Growing Role of Sustainability and Impact Investing
Another key takeaway from the UBS report is the rising importance of sustainability and impact investing. With climate change becoming a top risk over the next five years, family offices are incorporating sustainable investments into their portfolios to manage both risk and opportunity.
Our multi-family office solutions include sustainable investment advisory services that not only meet regulatory requirements but also align with the values of our clients, ensuring that their investments contribute to a better future while delivering competitive returns.
4. Managing Risk in an Uncertain World
In the current environment, geopolitical risks and economic uncertainty remain top concerns for family offices. The UBS report underscores the need for proactive risk management, with many family offices choosing to diversify their portfolios, increase liquidity, and hedge against riskier asset classes.
Our bespoke risk management strategies help families safeguard their wealth against unforeseen global events. From tax planning to regulatory compliance, our team ensures that clients have the right structures in place to protect and grow their assets, no matter the external challenges.
Navigating the Shifting Landscape
As family offices continue to reassess their strategies in 2024, having the right partners in place is more important than ever. At Finco, we offer the expertise and personalised services needed to adapt to these changes, whether it is by capitalising on new fixed income opportunities, exploring private equity, or aligning investments with sustainability goals.
Our commitment to professionalism, integrity, and a client-centred approach has made us a trusted partner for families and businesses alike.
Contact us today to learn how we can help your family office navigate the evolving financial landscape and secure its future for generations to come.