RESEAR CH


decline in 2016. However, allocations to hedge funds have continued to fall, making up just 5.7% of the average portfolio—a 3.2 percentage point drop year-on-year. Sara Ferrari, head of Global Family Office


Group at UBS, says family offices are becoming bolder in their investment approach. This showed in their inclination towards slightly riskier asset classes and their willingness to take on illiquidity by increasing their allocation to private equity. Another key finding is a trend toward co-investing, with trust being a top priority for family offices looking to pursue deals. Indeed, 81% believe that having access to quality opportunities through their trusted networks is the most important factor when considering deals. Family offices are also becoming increasingly


interested in pursuing sustainable and impact investing, with the majority planning to increase their exposure further. However, Gooch says family offices are still facing fundamental challenges when investing in the sector. “At the moment there is still an insufficient


level of knowledge within the family office community about sustainable investing, including a lack of clarity regarding key terms, how and where families can invest, and how they can best track the social and environmental impact of their investments,” she says. Globally, the average family office gave $5


million to philanthropic causes over the past 12 months, with 95% saying they plan to maintain or increase their donations in the coming year. Another notable finding of this year’s report


FAST FACTS


concerns succession. Despite nearly 70% of global families expecting a wealth transfer to the next generation within the next 10-15 years, researchers found that only 43% have a succession plan. Of those, only 24% have a formally written plan, while 9.4% have an informally agreed written plan and 10% have a verbal plan. Alarmingly, 49% admitted to not having a plan in place at all. For experts in the family office sector, the


message is clear: while amassing wealth through shrewd investment strategies and building lasting legacies may be the focus for families, failing to plan for succession could see fortunes fade fast.


Decade the family office was founded


100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%


37% 30% 10% 8.2% 3.4% 2.1% 1.6% 7.3%


Source: The UBS / Campden Wealth Global Family Office Report 2018


15.5% 7%


THE AVERAGE PORTFOLIO RETURN IN 2017


THE AVERAGE PORTFOLIO RETURN IN 2016


Source: The UBS / Campden Wealth Global Family Office Report 2018


311


FAMILY OFFICES TOOK PART IN THE REPORT


2/3


OF PARTICIPATING FAMILY OFFICES ESTABLISHED IN 2000 OR LATER


PARTICIPANTS HAD ON AVERAGE


$808 million AUM 8 CAMPDENFB.COM ISSUE 75 SUPPLEMENT | 2019


After 2010 2000s 1990s 1980s 1970s 1960s 1950s Before 1950s


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