Family offices cited inflation, possibility of a recession and geopolitical risks as greatest concerns, with increased market volatility, according to a study, 2022 Family Office Benchmarking Report, conducted by Northern Trust’s Global Family and Private Investment Offices Group, which partnered with the Wharton Global Family Alliance (WGFA).
In an environment of heightened uncertainty, it will be critical for successful families to fully understand, and plan for, near-term liquidity needs, including potential increases in cash allocations. Family offices recognize the importance of aligning long- term asset allocation with the family’s goals, as nearly 60 percent report having re-examined the family’s volatility and risk tolerance, and as a result, have changed their ways of managing liquidity. Notably, nearly one-third have increased allocations to cash (and cash equivalents).
The 2022 Family Office Benchmarking Report is the sixth in a serie
