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Family Offices Expect High Returns for PE and Real Estate

by

March 28, 2014

Family offices recently polled by Complementa and Bayerischen Finanz Zentrum expect modest returns of between zero and five percent for their entire portfolios, but for private equity and stocks their expectations are much higher.

 

According to their latest family office survey of 75 family offices in Germany, Austria, and Switzerland, the most important investment objective of more than half of the family offices surveyed (65 percent), is the preservation of capital, in addition to a constant cash flow adjusted for the inflation rate.

 

Asset managers surveyed said they favored stocks, with 25 percent of respondents giving them the greatest allocation. The cash portion of the portfolio has averaged 9.6 percent. In addition, the respondents favor real estate, allocating 16 percent to it, and 10 percent to private equity. Other allocations are much smaller, e.g. hedge funds 3.5 % and commodities 2.

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