Family offices in Asia have been taking advantage of rising interest rates by adding exposure to fixed income, according to a report by Citi Private Bank.
As of March 31, fixed income recorded five consecutive quarters of net dollar inflows amongst family offices in Asia Pacific, according to a report by Citi Private Bank. Developed investment grade and developed sovereign bonds were most in demand with the buying activity centered on US Treasuries and high-quality financial credits.
Within equities, net dollar flows were positive for two quarters in a row. Developed large cap equities were the main contributor.
Asset Allocation
As a result, fixed income allocations on an equal-weighted basis grew by 0.83 percent quarter-on-quarter to 21.9 percent. Equity allocations also increased by 0.37 percent to 40.4 percent. Hedge funds and private equity allocations rose slightly by 0.06 percent and 0.08 percent, respectively. Cash allocations fell 1.18 percent to 26.2 percent.
Citi Private Bank’s «Family Office Investment Report» is an ongoing study based on around 1,800 family offices globally that the US bank serves.
