The ultra-wealthy are allocating more of their money to equities and less to hedge funds and real estate this year, a survey of family offices published on Wednesday found.
Equities accounted for 27.1 percent of the average family office portfolio, the survey from UBS Wealth Management and Campden Research said. Equities allocation rose about 1.6 percentage points against the prior annual report for the global composite assembled from multi-year respondents.
Alternative investments, meanwhile, saw an overall 3.7 percentage point decrease. That category includes direct real estate purchases and hedge funds,
The survey included 262 online surveys with family offices globally, conducted between February and May, with the average office managing around $921 million.
The ultra-wealthy may put more money into equities ahead, the survey found, with around a fifth saying they plan to increase their developed-market equity exposure and nearly 44 percent planning to invest more into developing-market equities, the survey found.
One of the takeaways from the report is that the rich remained in love with private equity, with around a fifth of the average portfolio in segments including venture capital and co-investments, or collaborating with partners for direct investments into companies.
But family offices weren`t entirely starry-eyed about the segment.
One family-office executive in North America told the survey about some concerns ahead.
"Overall, private equity has done pretty well again, but I`m afraid that these returns may be starting to go down. There is just too much money chasing fewer and fewer deals," the executive said, according to the report.
Family offices also weren`t pleased with their investments in hedge funds.
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