Family offices temporarily reduce risk profile amid Covid-19: UBS report

Published Thu, Jul 16, 2020 · 09:50 PM

Singapore

GLOBAL family offices have shifted towards risk-averse asset classes such as cash and gold, with these offering a buffer for their portfolio amid uncertain times, the UBS' 2020 Global Family Office Report showed.

More than half of family offices rebalanced their portfolios from March to May with around 25 per cent and 21 per cent increasing allocation to cash and gold/precious metals respectively.

The report surveyed principals and executives in 121 family offices around the world. The participants come from single family offices, with average total family wealth of US$1.6 billion. Risk mitigation strategies including portfolio rebalancing helped mitigate risks from the deep sell-off in equity markets in March. In May, 76 per cent of family offices said t…