Ocorian: Family office strategies shift due to younger generations
Family office investment strategies are shifting as younger generations take a bigger role, new research from Ocorian shows.
The global study among family members and senior executives working for family offices with total wealth of $119.37 billion found 79% say that younger generations are becoming more involved in developing and reviewing investment strategies with 97% saying their priorities differ from the founders.
The study in 16 countries or territories including the UK, US, UAE, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius and Bahrain highlights concerns about succession planning.
Around one in eight (12%) say they are not seeing a natural succession in wealth and leadership at their family offices, while almost all (98%) agree more needs to be done on succession planning.
Major areas of contention between founders and the next generation identified by the study include attitudes to private markets and digital assets. More than half (51%) say younger generations have a greater focus on private markets and 42% say investing in digital assets is an area of disagreement.
Nearly two out of five (39%) say younger generations want more emphasis on buying physical assets such as real estate and private aircraft while a third (33%) point to differing views on geopolitical issues.
Almost one in ten (9%) point to differences on where family offices are based and 29% highlight how younger generations have a higher investment risk appetite.