Amid trade policy uncertainty, geopolitical tensions and technological transformation, family offices are staying resolute, making fewer shifts than last year. Asset allocations were largely held steady, pending greater clarity on trade policy. Among those implementing changes, bullish moves predominated. Private equity saw the most positive activity.
This is according to CitiWealth’s 2025 Global Family Office Report. Its findings are drawn from an annual survey, in which a record 346 family office respondents from 45 countries participated. Conducted in June and July 2025, the survey sheds light on how expectations and strategies have changed since the U.S. tariff announcements earlier this year.
Family offices expressed optimism about 12-month portfolio returns, despite limited consensus about which asset classes might drive performance. Potential U.S. deregulation, interest rate cuts and advances in artificial intelligence could all be factors in explaining this positive sentiment. Almost all respondents said that they anticipated portfolio upside over the year ahead – with nearly four out of ten family offices expecting returns of 10% or more.
That said, sentiment toward many individual asset classes was somewhat less positive than it was in 2024’s survey. Global trade disputes emerged as a top concern (60%) for family offices, followed by US-China relations (43%) and a resurgence of inflation (37%). Geopolitical tensions and government initiatives to attract capital are fueling interest in asset location and a re-evaluation of jurisdictions.
The US tariff announcements earlier this year triggered swift, calculated adjustments to bolster portfolio resilience, with 39% of family offices favoring active management. They also pivoted toward perceived defensive asset classes and geographies as well as hedging strategies.
When it comes to risks faced, 70% of respondents cited those related to investments, followed by operational (37%) and family-related risks (33%). But while many family offices reported strengthening risk management, approximately half of respondents acknowledged being underprepared to address cybersecurity, personal security and geopolitical risks.
While family offices have made progress in professionalising their investment function, more improvement is needed in operational risk management, cybersecurity and leadership succession planning. Meanwhile, the proportion of respondents mentioning they had deployed AI has doubled since last year, particularly in the automation of operational tasks and investment analytics. However, full integration will take time.
“Family offices globally remain highly focused on direct investing, as they seek exposure to the key transformative technologies of tomorrow and attractively valued companies across sectors,” explained Dawn Nordberg, Head of Integrated Client Engagement for Citi Wealth. 70% of respondents said they were engaged with direct investments. Of those, four out of ten said they had increased or significantly increased their activity in the last year, suggesting confidence in their ability to select deals that drive returns.
