Family offices largely held their asset allocations steady in 2025 amid an uncertain economy and United States tariffs, according to a Citi Wealth survey.
Half of respondents did not shift their fixed income holdings, up from 38% in 2024. Respondents in private equity were the most likely to have increased their allocations, with a net rate of 26% doing so, though this fell from 30% last year.
“More family offices held their strategic allocations to individual asset classes steady overall compared to last year. Of those that did make changes, bullish shifts outnumbered bearish ones, particularly in private equity followed by fixed income and public equity,” wrote Citi Wealth.
“In response to the tariff-induced market volatility in early 2025, many family offices responded with active management, including shifts to more defensive asset classes and geographies.”
Family offices with over US$500 million in assets under management were more likely to increase their allocations across asset classes, except for fixed income.
Around 63% of family offices reported adjusting their strategies after the U.S. announced wide-ranging tariffs in April.
According to the survey, 39% said they took an active management approach, with 25% allocating more assets to defensive asset classes. Asia Pacific family offices were the most likely to allocate assets to defensive classes, geographies, and sectors.
Trade disputes and tariffs were respondents’ top concern, at 60%. Around 43% ranked U.S.-China relations as a concern, and 37% ranked inflation.
In the first six months of 2025, 59% of respondents’ portfolios rose by 0-10%, while 25% reported increases of more than 10%. Just 4% said their portfolios decreased by 0-10%, and 2% saw portfolios decline by more than 10%.
