In 2019, well before the coronavirus pandemic, about three-fourths of family offices were investing in real estate. In fact, family offices signaled, they’ll be “far more aggressive’ in buying real estate than other investors. The average family office portfolio delivered a 5.4 percent return. Developed market equities produced an average return of 2.1 percent for family offices; falling 5.2 percentage points below expectations. Developing market equities returned -1.1 percent, trailing -10 percentage points behind expectations. Private equity fared the best of all asset classes for family offices, achieving an average return of 16 percent for direct investments and 11 percent for funds-based investing. The performance of real estate also held up well, with an average return of 9.4 percent. Family offices have increased their allocations to the asset class by 2.1 percentage points, and real estate now accounts for 17 percent of the average family office portfolio.
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References
Global Family Office Report 2019
Global Family Office Report 2018
Global Family Office Report 2020 – NEW