Citi Wealth Report Highlights Global Trade Disputes as Top Concern for Family Offices

What's Happening?

The 2025 Global Family Office Report by Citi Wealth reveals that global trade disputes are the primary concern for family offices worldwide, with 60% of respondents indicating this issue as their top worry. The report surveyed 346 family offices across 45 countries, highlighting US-China relations and inflation resurgence as other significant concerns. Despite these geopolitical challenges, family offices remain optimistic about their portfolio returns, with nearly 40% expecting returns of 10% or more. This optimism is attributed to potential US deregulation, interest rate cuts, and advances in artificial intelligence. The report also notes a strong commitment to direct investing, with 70% of respondents engaged in this activity, and an increasing adoption of artificial intelligence for operational tasks and investment analytics.

Why It's Important?

The findings of the Citi Wealth report underscore the impact of global trade disputes on investment strategies and economic stability. Family offices, which manage substantial wealth, play a crucial role in shaping investment trends and economic outcomes. Their concerns about trade disputes and geopolitical tensions could influence market volatility and investment flows. The optimism regarding portfolio returns suggests confidence in the US economic policies and technological advancements, which could drive economic growth. However, the report also highlights gaps in risk management, particularly in cybersecurity and geopolitical risks, indicating areas that require further development to safeguard investments.

What's Next?

Family offices are likely to continue focusing on direct investing and leveraging artificial intelligence to enhance their investment strategies. As geopolitical tensions persist, these offices may seek to diversify their portfolios to mitigate risks associated with trade disputes. The report suggests that ongoing professionalization and improved risk management practices will be essential for family offices to navigate the complex global economic landscape. Additionally, the influx of wealthy individuals into regions like the UAE may further establish these areas as global hubs for family offices, influencing regional economic dynamics.

Beyond the Headlines

The report's emphasis on direct investing and AI adoption reflects broader trends in the investment landscape, where technology and innovation are increasingly driving decision-making processes. The professionalization of family offices, particularly in investment functions, highlights a shift towards more sophisticated and strategic management of wealth. This evolution may lead to increased competition among family offices and a greater focus on attracting talent and expertise in non-investment services. The report also points to the need for enhanced cybersecurity measures, as digital threats continue to pose significant risks to financial assets.