Global family offices are significantly altering their investment strategies in response to inflation shocks, unpredictable central bank policies, and geopolitical instability. According to Theone Star, head of private wealth at Schroders Australia, traditional investment approaches are no longer adequate in the current economic climate. Schroders’ research indicates a growing emphasis on portfolio resilience, with 56 per cent of family offices prioritising it and 46 per cent reducing their risk appetite in the near term.
Family offices are showing strong interest in private assets as part of this strategic shift. Private equity remains a popular choice for 51 per cent of these offices, followed closely by public equity at 48 per cent. An increasing number are also exploring private debt and direct lending, with 81 per cent believing they offer the best risk-adjusted returns. Niche strategies such as sector-specific private equity and small-to-mid cap buyouts are also gaining attention.
Active management is also seeing increased confidence. The Schroders’ research shows that 74 per cent of family offices believe active managers can add value during times of market volatility, and 86 per cent intend to increase their allocations to active strategies this year. Star noted that active managers have an advantage in identifying mispriced assets, swiftly adjusting positions, and capitalising on market dislocations. Schroders is a global asset manager offering a range of investment solutions to institutions, intermediaries and individuals around the world. Schroders manages investments across equities, fixed income, multi-asset, alternatives and real estate.
Additionally, family offices are incorporating the perspectives of the next generation into their investment decisions. This includes an increasing interest in digital assets, venture capital, and thematic strategies that align with new values and priorities. This evolving approach reflects a broader adaptation to the changing global landscape.
