Citibank: Household in the Asia-Pacific region more positively responsive to tariffs, 83% of respondents expect portfolio returns to exceed 5% this year.

The "2025 Global Family Office Survey Report" released by Citigroup Wealth Management pointed out that compared to other regions globally, family offices in the Asia-Pacific region have a more proactive response to tariffs and are the first to allocate funds to defensive asset classes, regions, and industries. Among them, the majority (83%) of family offices in the Asia-Pacific region expect portfolio returns to exceed 5% this year. The report stated that family offices in the Asia-Pacific region are among the most internationalized in all regions, with 76% of respondents having businesses spread globally. Trade disputes and US-China relations are the most important factors considered by respondents in their investment strategies. John Woods, Head of Global Family Office for Asia-Pacific at Citigroup Wealth Management, observed that clients are adopting proactive and firm investment strategies, especially in public equity allocation. He also believes that the Asia-Pacific region is undoubtedly leading the pace of wealth management development. The report also pointed out that due to unclear trade policies, the asset allocation of family offices has remained stable, with fewer adjustments made compared to last year. Among family offices choosing to adjust their asset allocation, bullish investment strategies dominate. Private equity activity is the most active in this regard. Family offices also express optimism about portfolio returns in the next 12 months, although there is a lack of consensus on which asset classes will drive performance. This optimistic outlook may be due to the potential relaxation of regulations, interest rate cuts, and artificial intelligence development in the US. After the US announced tariff measures, family offices quickly made precise strategic adjustments to strengthen the resilience of their investment portfolios. 39% of family offices took proactive measures and switched to defensive asset classes, regions, and hedging strategies. Global trade disputes have become the top concern for family offices, followed by US-China relations and rising inflation. The geopolitical situation and government measures to attract funds are causing family offices to reconsider asset allocation locations and reassess jurisdiction. The survey results of the report come from an annual survey, with a total of 346 family office respondents from 45 countries, of which 29% were from the Asia-Pacific region. The survey was conducted in June and July this year, reflecting the expectations and strategic changes of family offices since the US announced tariff measures at the beginning of the year, highlighting the active leadership role of family offices in the Asia-Pacific region in internationalization and wealth education for the next generation.