Citi Wealth's annual check-in with 351 family office firms, taken in June and July, shows inflation at the front of the worry queue for 63% of respondents, up from 37% in 2025. Trade disputes and tariffs were named the top concern by 18%, down sharply from 60% a year earlier. Other top-cited risks: changes in interest rates at 44%, market volatility at 34%, and the Middle East conflict at 32%.
Alexandre Monnier, head of Citi Wealth's family office advisory, remarked that the rapid jump in inflation worries surprised him, although the figures indicate portfolio positioning hasn't shifted to the same extent.
"I think family offices are becoming more sophisticated and see risk management as something more active that allows you to stay invested during periods of uncertainty, instead of having to retrench the way they might have done it historically," Monnier said.
Fixed income barely budged. Over the past year, on net, 3% more firms trimmed rather than raised their bond allocations. Equities were a different story: a net 34% increased public stock exposure, though 42% did not touch their stock mix.
Beyond equities, private equity and cash drew the most fresh money, with a net 15% of respondents adding to each. Looking ahead, nearly one third of firms, on net, expect to add to global developed-market stocks over the next 12 months. Around a net 10% plan to lift private equity allocations, either via direct deals or funds.
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Private credit is the laggard. On net, 12% aim to cut that exposure in the coming year. On average, views tilt mildly against emerging-market bonds and cash, and both categories show just a 6% net bias toward cutting allocations.
Monnier said some families may be keeping liquid, inflation-sensitive holdings to preserve the ability to pounce later or to play defense.
Only 11% said they would put more into commodities, which translates to 3% on net planning increases. Monnier found that muted interest surprising given commodities' role as inflation hedges, especially oil and gasoline, and suggested many families may be delegating those bets to outside managers.
Real estate stands out in North America. There, 37% plan to allocate more to property, compared with 25% of respondents overall who plan to add to the traditional inflation hedge. Monnier said North American families report the highest average stakes in directly owned real estate and in direct private equity holdings. "I think it highlights the appetite, the orientation towards ownership and private market exposure that we see in North America," he said.
Fears around prices and market chop have not cooled enthusiasm for going direct. Forty percent of family offices expect to step up their direct-investment activity to some degree, while only 11% foresee modest pullbacks or a pause. Monnier tied the push to a desire for more control over private equity portfolios and for engaging the next generation.
"The next generation is drawn to direct investments, tangible assets, more so than a paper portfolio," he said. "You know, if you invest in a hedge fund, it's a line in your report, but it's hard to understand, what is it that you own. If you own a stake in a business or in real estate, you can touch it. It's across the street."
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