Asian Family Offices in the Wealth Sector of 2025 Prioritize Next Generation Education
Family offices worldwide are navigating a complex investment environment, with a focus on professionalizing their functions and adapting to new challenges. According to recent research, 44% of respondents lack cybersecurity offerings, highlighting a potentially urgent area for development.
The report also reveals that family offices have made progress in professionalizing their investment functions, but there is still room for improvement, particularly in operational risk management, cybersecurity, and leadership succession planning.
Investment strategies are being shaped by a variety of factors, with survey respondents identifying trade disputes and U.S.-China relations as their primary concerns. The Asia Pacific region seems to be particularly affected, as family offices in this region have shown a more vigorous response to tariff turmoil, leading in allocations to defensive asset classes, geographies, and sectors.
Despite these challenges, family offices remain optimistic about their portfolio returns, with a strong majority of APAC family offices anticipating returns above 5% this year. This optimism, however, is not accompanied by a consensus on which asset classes might drive performance.
The report also sheds light on the international presence of family offices. Families from APAC are among the most international, with 76% having a global footprint. However, the region with the highest number of family offices having an international presence is not explicitly stated in the search results provided.
Another significant finding is the increased adoption of technology, with the proportion of respondents mentioning they had deployed AI having doubled since last year. This is particularly evident in the automation of operational tasks and investment analytics. However, full integration will take time.
In an effort to manage their growing responsibilities in a cost-efficient manner, many family offices are considering external suppliers. The announcement's content is solely the responsibility of the issuer and can be found at www.citigroup.com.
Lastly, the report highlights a maturing market, with 43% of wealth under second-generation control. Global trade disputes, U.S.-China relations, and a resurgence of inflation are top geopolitical concerns for family offices.
In conclusion, family offices are adapting and evolving in response to the changing global landscape, focusing on professionalizing their functions, managing operational risks, and leveraging technology to improve their investment strategies.
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