- 58% of Asia-Pacific family offices reported an increase in AUM, (with 32% reporting an increase of more than 10%) compared to 18% reporting a decrease.
- About 15% of APAC family offices have the next generation in control. Only 56% feel well prepared for succession. Only 44% believe their next gens are sufficiently prepared.
- The most popular asset category for future investment is real estate, with 22% increased exposure, and 39% intending to increase their allocations, in contrast to global trend.
- 45% of family offices agree with the statement that blockchain technologies will create substantial value.
- A net 32% of family offices are actively looking to increase their engagement in artificial intelligence.
HONG KONG SAR & SINGAPORE – 13 December 2023 – Asia-Pacific (APAC) family offices have demonstrated remarkable resilience and adaptability in navigating the ever-evolving financial landscape. Asia-Pacific Family Office Report 2023, a comprehensive survey conducted by Raffles Family Office and Campden Wealth, has found.
Majority of APAC family offices report asset growth
The report found that 58% of Asia-Pacific family offices have 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 borrowings, and increasing exposure to equities.
Mr. Chi-man Kwan, Group CEO and Co-Founder, Raffles Family Office, said:
“Asia-Pacific family offices are evolving at a remarkable pace. Our report highlights the resilience and adaptability of these family offices, particularly in asset allocation and technology adoption.”
Generational shift and succession planning numbers signify profound change
Currently, approximately 15% of family offices in APAC are under the control of the next generation. Over the next five years, this figure is expected to surge to 47%, indicating a significant generational shift. Despite these shifts, only 56% of family offices feel well-prepared for succession.
“This shift signifies a profound change in the region’s investment and management strategies, marking a new chapter for family offices in Asia-Pacific,” Mr. Kwan added.
Real Estate tops private investment as family offices continue to embrace technology
Real estate emerges as the favored asset category for future investments, with 39% of family offices in APAC intending to increase their allocations.
Additionally, 32% plan to boost investments 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.
Room for efficiency and communication
From an operational perspective, the report discovered that the adoption of relatively new wealth aggregation platforms, which can provide an overview of an organisation’s financial position by consolidating data from multiple banks and investment managers, is still relatively low. Currently, just 30% of family offices express a desire to leverage these platforms but this is anticipated 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 uptake can best be attributed to the novelty of these tools and their high cost.”
This report is based on a statistical analysis of 330 survey responses from single family offices and private (not commercial) multi-family offices worldwide. On average, Asia-Pacific families participating in the survey had total wealth of US $0.9 billion, and their collective wealth stood at US $68 billion. Their family offices had, on average, US $0.5 billion of AUM, whilst aggregate AUM stood at US $41 billion. Download the full report at: https://bit.ly/RFO-APAC-report2023
