UBS, in partnership with Campden Wealth Research, presented its annual report on family offices across the world. On average, Asia Pacific family offices manage almost half a billion dollars.

With a reading of 6.7 percent, APAC family offices in 2016 recorded the second-strongest performance compared to other regions with portfolios favoring private equity and equities. Hong Kong family offices achieved 5.9 percent, with a higher allocation in real estate investments compared with peers. North America family offices produced the strongest performance at 7.7 percent.

In the latest survey of family offices, UBS received answers from 42 family offices based in the Asia Pacific region, nine of which from Hong Kong and 11 from Singapore. The report showed that Asia Pacific (APAC) family offices are back in good health, UBS said in a press release.

Tech Sectors Favored

On average, Asia Pacific family offices manage $445 million. They hold 20.9 percent in private equity, slightly more than the average 20.3 percent of family offices globally.

In terms of sectors, Asia Pacific family offices preferred investments in the healthcare, education, consumer and tech sectors, primarily in the U.S. and Asia, with China playing an important role.

Key Findings

Succession planning is a key priority in Asia Pacific, with almost half of the region's family offices developing succession plans. Two thirds of the family offices in the region expect to undergo a generational transition in the coming 15 years, an explanation for why succession plans are priority No. 1 at the firms. 

Family offices in Asia Pacific lag behind other regions when it comes to succession planning, as currently only 13 percent have written plans in place while almost 20 percent have no plan at all.

New Values

Sustainable and environment, social and governance (ESG) investments have become increasingly important to the next generation of wealth holders in APAC. There has also been steady growth in this segment with 26.7 percent of family offices in Asia Pacific currently involved.

«We see younger family members in APAC bringing in new values focused largely on social and environmental impact,» said Anurag Mahesh head of global family offices in the APAC region at UBS Wealth Management.