Ultra wealthy investors are refusing to let economic anxiety dictate their strategy, choosing instead to lean further into growth despite a surging fear of inflation. According to a recent survey from Citi Wealth, nearly two thirds of family offices now cite inflation as their primary investing concern, a massive jump from previous years. This shift reflects a growing unease about the eroding power of currency, yet surprisingly, this apprehension has not led to a widespread retreat from the markets.
Rather than pulling back or shifting heavily into safe havens, these sophisticated investment firms are doubling down on public equities and private equity. A significant portion of respondents indicated plans to increase their exposure to global developed stocks and direct investments over the coming year. Alexandre Monnier, head of family office advisory at Citi Wealth, suggests that today’s family offices view risk management as an active process. Instead of retreating during uncertain times as they might have in the past, they are using modern strategies to remain invested while navigating volatility.
While many expected a pivot toward traditional inflation hedges like commodities, interest there remains remarkably low. Real estate continues to be a preferred sanctuary, particularly for North American families who show a strong preference for owning tangible assets over paper portfolios. Private credit is seeing less love, with several firms planning to trim their positions in that sector as they prioritize liquidity and direct ownership.
This drive toward direct investment may be fueled by more than just financial gain; it appears to be a generational bridge. Monnier notes that younger heirs are far more interested in owning actual businesses or physical property than tracking lines on a hedge fund report. By focusing on assets they can actually touch and manage, family offices are finding a way to keep the next generation engaged in wealth management while maintaining an aggressive posture against an inflationary backdrop.