Family offices to splash cash in APAC

Most family offices intend to boost their allocations to Asia Pacific, excluding Greater China, over the next five years.

That's according to the latest Global Family Office Study from UBS, which found 55% of APAC family offices are planning to invest more in their own backyard. Some 30% said they'd also invest more in Greater China in the next five years.

In the short term, 22% of APAC family offices said they'd increase exposures to India and Taiwan over the next 12 months, while 39% will boost investment in Mainland China.

The preferred asset classes for family offices in APAC are bonds and equities, with 48% planning to increase their investment in developed market equities and 40% looking to allocate more to emerging market equities in the next five years.

In 2024, the average APAC family office allocated 24% to equities and 20% to bonds from developed markets.

The report noted there is caution among APAC family offices, with the region's family offices holding an average of 12% in cash or cash equivalents. This was prior to the outbreak of the trade war in April and is 8% higher than the global average.

As for whether or not APAC family offices are investing actively or passively, the report found the region had the smallest proportion of passive investors - just 22% of family offices are managing their equity portfolios passively. This is compared to the US, where it's most common, at 56%, and the global average of 36%.