Asia-Pacific family offices build resilient portfolios to withstand tariff shocks: Citi

Most family offices in Asia-Pacific are bullish about their portfolios and expect decent returns this year, with interest rate cuts and advances in artificial intelligence more than offsetting tariff uncertainties, according to a Citi wealth survey released on Tuesday.

More than 80 per cent of family offices in the region anticipated returns of more than 5 per cent this year, the Citi Wealth 2025 Family Office Report showed. At least 30 per cent of those surveyed expected returns of between 10 and 15 per cent, and an additional 8 per cent anticipated returns of more than 15 per cent.

Asia-Pacific family offices also responded proactively to the tariff turmoil – triggered by the US in April – more than their global counterparts, allocating 39 per cent of their resources to perceived defensive asset classes, according to the survey. They were among the most international in their outlook, with 76 per cent having a global footprint.

“We are seeing a proactive and highly confident approach to investment, particularly in public equities, coupled with a commendable dedication to nurturing the next generation of wealth stewards and embracing a global outlook,” said Bernard Wai, Asia-Pacific head of Citi Wealth’s global family office group in a statement.

Global markets were thrown into a tizzy when US President Donald Trump announced reciprocal tariffs ranging from 10 per cent to as much as 49 per cent on the country’s major trading partners. Global markets reacted negatively to the development, wiping out trillions of dollars from major global markets. On April 7, the Hang Seng Index slumped 13.2 per cent, its worst drop in percentage terms since the 1997 Asian financial crisis.

The Citi survey polled 346 family offices from 45 countries, of which 29 per cent were from Asia-Pacific. The average net worth of the participants was US$2.1 billion.