Most family offices in Asia Pacific highlighted US-China tensions as the top risk for financial markets this year, according to a report by Raffles Family Office.
The subject of US-China tensions was selected by 57 percent of APAC family offices as the «financial market risk most likely to crystallize in 2023», according to a report by Raffles Family Office and Campden Wealth.
This was followed by risks related to excessive Fed tightening (38 percent), a banking crisis (34 percent), de-globalization and de-dollarization (34 percent) as well as a US recession (34 percent). In comparison, family offices worldwide chose US-China tensions (50 percent) as the top risk, followed by a US recession (43 percent), inflation (39 percent), Fed tightening (36 percent) and a banking crisis (26 percent).
Investment Priorities
In light of the environment, family offices globally chose the need to hedge inflation risk as the top investment priority this year. This was followed by investing in alternatives and realigning portfolios towards growth opportunities.
In the longer term, equities were chosen as the asset class with the best returns. Private equity and venture capital as well as cash and cash equivalents were chosen as the second and third top asset classes, respectively.
The report was based on a survey conducted between April and September 2023 with 330 single family offices and private, non-commercial multi-family offices (including 76 located in APAC) with estimated assets under management totaling $269 billion.
