SUMMARY
Family office clients continue to put their liquid resources to work as had been the case last year. Developed Large Cap Equities remain a focus, while they also showed enthusiasm for Developed Small and Mid Cap Equities. They have proven slightly more ambivalent when it comes to Fixed Income, albeit still seeing value among investment grade segments. We explore these moves and what they may be thinking.
The wisdom of crowds is a well-established principle. It is the recognition that the collective actions of large groups of diverse and independent individuals may transmit valuable information. Analyzing such crowds’ decisions may prove more fruitful than relying upon just one expert’s view. We believe this may be especially relevant when the group itself is made up of sophisticated thinkers.
Our Family Office Investment Report is an ongoing study of the wisdom of crowds, specifically of the 1,800 or so family offices we serve globally. Our quarterly edition of Family Office Investment Report explores an important question against the backdrop of recent geopolitical and economic developments: what are some of the world’s most sophisticated investors doing with their portfolios?
By observing their aggregate portfolio allocations and latest moves each quarter, we seek to add further understanding to our analysis of financial markets and the key themes that are driving them.
Using data from our family office clients worldwide, we examine recent portfolio positioning and shifts at global and regional levels. We also discuss the findings in the context of Citi Global Wealth’s best thinking on tactical and strategic asset allocation and the macroeconomic and geopolitical environment.
Key takeaways from our Family Office Investment Report
Entering 2024, our family office clients exhibited several noteworthy tendencies. As had been the case last year, they were putting cash to work, with an emphasis upon Developed Large Cap Equities and Fixed Income of higher quality.
This followed markets’ strong ending to a positive 2023, for which our clients had been well positioned. Subsequently, their conviction on equities has been well rewarded, while fixed income has slightly reversed.
During the first quarter of 2024, family offices have again shifted liquid resources into the markets.
Developed Large Cap Equities remain a focus, while they also showed enthusiasm for Developed Small and Mid Cap Equities. This is consistent with our Global Investment Committee’s call for a broadening bull market in this asset class.
They have proven slightly more ambivalent when it comes to Fixed Income, albeit still seeing value among investment grade segments.
Contact us to learn more about our family office advisory services and to discuss this edition’s Q1 2024 report findings.
