Interest rates remain the primary concern for 55 percent of family offices in Europe, the Middle East and Africa (EMEA), surpassing worries about the Middle East conflict and the Russia-Ukraine war, according to Citi Private Bank.

Fixed income saw the largest allocation increases in the EMEA region, with 59% of family offices raising their investments in this asset class. Additionally, nearly 40% of family offices across EMEA, Latin America, and Asia Pacific reduced their cash holdings, compared to 30% in North America, the bank said in its 2024 family office survey.

Real estate remained a stable asset class across all regions, with minimal changes in allocation.

Family offices in Asia Pacific and EMEA were the most positive on the outlook for global developed equities at 48% and 46%, respectively. These regions were also the most bullish on direct private equity (49% and 53%) and private equity funds (48% and 43%).

Asia Pacific family offices reported the most geographically diversified portfolios, followed by EMEA and Latin America.    

Family offices in EMEA were most likely to consider seeking financing in the coming year, with only 28% ruling it out. They also showed the highest commitment to AI investments, with just 12% not prioritising it.

The Middle East offered attractive investment potential across real estate, energy and the broad reinvention of the regional economy, Citi report added.

(Editing by Seban Scaria seban.scaria@lseg.com )