Family offices in Citi Wealth's 2026/27 Global Family Office Report plan selective changes. The strongest net intention is towards global developed equities at plus 32 points, hedge funds stand at plus 14, and private credit has moved to minus 12. Inflation is the leading concern, cited by 63% of respondents.
What did family offices change over the past year?
Citi Wealth's 2026/27 report first asks what offices changed over the previous 12 months. Public equity saw the broadest additions. The figures count offices changing exposure, not the size of the changes. [1]
| Asset class | Increasing | Unchanged | Decreasing | Net, pp |
|---|---|---|---|---|
| Public equity | 46% | 42% | 12% | +34 |
| Cash | 37% | 41% | 22% | +15 |
| Private equity | 35% | 45% | 20% | +15 |
| Fixed income | 23% | 51% | 26% | −3 |
| Real estate | 23% | 56% | 21% | +2 |
Source: Citi Wealth, 2026/27 Global Family Office Report, pp. 23, 26. Net means the share increasing minus the share decreasing.
The 2025 survey published net results of plus 11 for public equities, plus 1 for cash, plus 26 for private equity and plus 14 each for fixed income and real estate. Respondents differ between years, so the comparison is not a tracked change in the same offices. [1]
Larger offices more often increased private equity, at 39% against 29% for smaller offices. Smaller offices more often cut fixed income, at 31% against 21%. [1]
What do family offices plan for the next 12 months?
| Asset class | Increase | Maintain | Decrease | Net 2026, pp | Net 2025, pp |
|---|---|---|---|---|---|
| Global developed equities | 37% | 58% | 5% | +32 | +17 |
| Hedge funds | 28% | 59% | 14% | +14 | +14 |
| Direct private equity | 27% | 58% | 16% | +11 | +15 |
| PE funds / funds of funds | 26% | 59% | 16% | +10 | +7 |
| Real estate | 25% | 57% | 18% | +7 | +6 |
| Emerging-market equities | 25% | 64% | 11% | +13 | +11 |
| Cash | 20% | 55% | 26% | −6 | +4 |
| Developed investment-grade fixed income | 17% | 67% | 16% | +1 | +4 |
| Commodities | 11% | 81% | 8% | +4 | +10 |
| Private credit | 10% | 68% | 22% | −12 | +12 |
| Emerging-market fixed income | 8% | 77% | 14% | −6 | −6 |
| Art | 7% | 83% | 10% | −3 | −10 |
| Developed corporate high-yield fixed income | 6% | 77% | 17% | −10 | −3 |
| Digital assets | 3% | 82% | 14% | −11 | −1 |
Source: Citi Wealth, 2026/27 Global Family Office Report, pp. 39-40. Published net figures may differ by one point from subtracting the displayed components. The question has no separate no-exposure category.
The main finding is selectivity within alternatives. Hedge funds and private equity carry positive net intentions, while private credit and digital assets show more planned decreases than increases. Cash moved from plus 4 to minus 6. [1]
These are intentions. They do not convert into a percentage fall in assets or a measured fund outflow. Because the question has no no-exposure category, a response of maintain does not confirm an existing allocation. Our analysis of private-credit sentiment covers that category in detail.
Which risks shape these plans?
| Concern | Respondents selecting it |
|---|---|
| Inflation | 63% |
| Interest-rate evolution | 44% |
| Global financial-system stability | 38% |
| Market volatility | 34% |
| Middle East conflict | 32% |
| U.S.-China relations | 22% |
| Trade disputes / tariffs | 18% |
| Currency risk | 11% |
| Russia-Ukraine war | 4% |
Source: Citi Wealth, 2026/27 Global Family Office Report, pp. 27-28. Multiple concerns could be selected.
In the prior survey, inflation and interest-rate concerns stood at 37% and 30%, while trade and tariff concerns stood at 60%. These comparisons describe changed survey responses, not independently measured macroeconomic risk. [1]
How do family offices respond to volatility?
In response to geopolitical volatility, 41% made no portfolio adjustment, 34% used active management and 27% used hedging strategies. A further 18% shifted towards defensive asset classes, 16% towards defensive sectors and 12% towards defensive geographies. Responses overlap. [1]
Hedging activity is distinct from investing in a hedge fund. The large no-adjustment share alongside selective tactical action suggests that strategic allocations and risk management run side by side.
What return targets and review thresholds do they set?
| Target | Share of respondents |
|---|---|
| Above 15% | 11% |
| 13% to 15% | 7% |
| 10% to 13% | 18% |
| 7% to 10% | 41% |
| 5% to 7% | 20% |
| Below 5% | 3% |
Source: Citi Wealth, 2026/27 Global Family Office Report, p. 33. Targets, not results; no consistent gross or net definition is provided.
The 7% to 10% band is the largest group, not a majority. First-generation families have a larger above-15% group, at 19%, against 5% in the second generation and 4% in later generations. [1]
Stated drawdown thresholds for reviewing strategy are below 5% for 10% of respondents, 6% to 10% for 19%, 11% to 15% for 24%, 16% to 20% for 16%, 20% to 25% for 16% and at least 25% for 16%. Approximately 72% specify a threshold of at least 11%. These are review triggers, not demonstrated loss tolerance; the printed intervals overlap. [1] Our guide to drawdown and recovery metrics explains how drawdowns are measured.
Gnosis introduces institutional allocators to investment managers regulated in their home jurisdiction and evaluates those managers through Allocator IQ (AIQ). It does not advise on allocations, manage assets, hold custody or execute orders.
Frequently asked questions
Are family offices increasing alternatives?
Selectively. In Citi Wealth's 2026/27 Global Family Office Report, hedge funds and private equity show positive net intentions, while private credit and digital assets show more planned decreases than increases.
What is the most common return target?
A core-portfolio target of 7% to 10%, selected by 41% of respondents. It is the largest group, not a majority, and the figures are targets rather than results.
Which concern ranks highest for family offices?
Inflation, cited by 63% of respondents for the next 12 months, followed by interest-rate evolution at 44% and global financial-system stability at 38%.
Do family offices change portfolios in response to geopolitical volatility?
Many do not. In the same survey, 41% made no portfolio adjustment, while 34% used active management and 27% used hedging strategies.
For institutional investors. This article provides general information, not investment, tax or legal advice or a recommendation of any manager, strategy or structure. Survey figures describe the stated populations and periods and do not indicate future allocations or results. Past performance is not necessarily indicative of future results.
Sources
- Citi Wealth, 2026/27 Global Family Office Report. Survey beginning June 2026 of 351 Citi Wealth family-office clients across 41 countries; year-on-year comparisons use different respondents. pp. 23-30, 33-41.