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Introduction 

Our 2024 survey of family offices attending Deutsche Bank Wealth Management events in London and Singapore in May of this year shows that global conflicts, historic elections, and the transformational impact of AI are just a few of the factors creating an uncertain environment for investors in 2024.

While risks abound, family offices continue to identify new opportunities as they look for strategic and sustainable approaches to wealth management. We hosted two events earlier this year in London and Singapore with topics that ranged from permanent capital to private credit, as well as geopolitical risks and global real estate markets. While the two events had audiences drawn from different regions, it’s clear from the survey findings that some factors are of crucial importance for family offices globally as they seek to navigate a complex investment environment.

 

2024 survey highlights:

  • Geopolitical factors are influencing asset allocation decisions across the globe with family investors in Asia particularly concerned by rivalries between China, the EU and the US.
  • In response, family offices plan to increase their exposure to North America and Asia; the former was most favoured by those attending the London event with participants in Singapore prioritising Asia (excluding China) first and foremost.
  • Many family offices have also added to their fixed income or cash allocations to mitigate risk in their portfolios.
  • The AI boom is capturing the imagination of family offices as reflected in answers in both surveys.  In the Singapore survey, data centers are the most favoured type of real estate investment, whereas in London, 24 percent surveyed said they will invest in AI in the next one to three years, making it the most favoured investment theme. 

 

From the London family office survey1:

  • Geopolitics is the global theme having the most impact on asset allocation decisions by family offices (cited by 46 percent of respondents). 
  • In terms of asset allocation by region, 64 percent plan to increase their exposure to North America in the next three years, compared with 61 percent for Asia (excluding China) and 36 percent for Europe.
  • Diversification to manage portfolio risk remains an important theme. Asked about steps they have taken or are considering taking to reduce risk, the most common response was adding to fixed income and/or cash allocations (37 percent).
  • Artificial Intelligence and Technology lead the field for areas of interest for investments over the next one to three years, cited by 24% of respondents. Healthcare and Medtech (19 percent) and Cybersecurity (14 percent) were the next most popular themes.
  • Alternative investing is playing an important part in the approach of many family offices. Private equity (30 percent) and real estate (21 percent) were the favoured alternative avenues for our respondents.

 

From the Singapore family office survey2: 

  • Rivalry between China and the European Union and US is the geopolitical factor most influencing asset allocation decisions by our respondents, followed by the Russia-Ukraine war and trade tensions between the EU and China.
  • Asia (excluding China) is the region where family offices most expect to increase their asset allocation over the next three years, followed by North America in second. Europe comes in third place, the same as in the London survey.
  • Data centres and digital infrastructure, including energy/power, are the most favoured type of real estate investment for the coming year, with 49 percent indicating an interest in them.
  • All attendees responding to a separate feedback survey said they came away with actionable insights; 40 percent had many and 60 percent had some.

Footnotes

1.

Deutsche Bank Family Office Survey, London, May 2024

2.

Deutsche Bank Family Office Survey, Singapore, May 2024

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