Risk management is of top priority for family offices in Europe, as they look to make the best of the uncertain global market environment, finds a new report by Campden Research.
Entitled Beyond Uncertainty: Family Offices Adapt to Unpredictability, the survey, which analysed more than 50 single and multi family offices across Europe and was sponsored by UBS, found that family offices are increasingly outsourcing risk functions to better deal with monitoring the safety of their investments.
But despite the heightened focus on managing risk, family offices are nevertheless increasing their exposure to riskier assets such as equities and hedge funds, said the report.
The survey also found that while asset managers are the most valued providers of financial services, legal advisers and tax specialists were also popular for their non-financial assistance.
When it comes to returns gained, both single and multi family offices achieved average returns of around 8% in the 12 months to June 2011. But the drop was significant for MFOs – they had returns of 11.7% the year before, while SFOs had returns of 9.1% last year, according to the research.
Around 80% of family offices questioned had total investable wealth of more than €100 million.