Global trade disputes are the primary concern for family offices worldwide, according to 60 per cent of respondents in the 2025 Global Family Office Report released by Citi Wealth. The report, which surveyed 346 family offices from 45 countries, also found that US-China relations (43 per cent) and a resurgence of inflation (37 per cent) were other major concerns.
The flagship publication from Citi Wealth’s Global Family Office Group explores investment sentiment, portfolio actions, and operational best practices among some of the world’s most sophisticated investors. The survey was conducted in June and July 2025, shedding light on how strategies have changed since the US tariff announcements earlier this year.
Optimistic outlook despite geopolitical concerns
Despite the geopolitical concerns, family offices expressed optimism about their 12-month portfolio returns, with nearly four out of 10 expecting returns of 10 per cent or more. The report suggests this positive sentiment may be driven by potential US deregulation, interest rate cuts and advances in artificial intelligence.
In response to market volatility, 39 per cent of family offices reported favouring active management to bolster portfolio resilience. While most held their asset allocations steady, those implementing changes were predominantly bullish, with private equity seeing the most positive activity.
Hannes Hofmann, head of Citi Wealth’s global family office group, said: “These are exciting times for family offices worldwide, especially in the Middle East. A high proportion of first-generation families continue to control wealth, reflecting a resurgence of wealth creation in the region. At the same time, the UAE is experiencing a significant inflow of wealthy individuals relocating from abroad, further reinforcing its position as a global hub for family offices.”
The report found that the Europe, Middle East and Africa (EMEA) region had the highest proportion of first-generation families controlling wealth, at 56 per cent.
A focus on direct investing and AI adoption
The report highlighted a strong commitment to direct investing, with 70 per cent of respondents engaged in this activity. Of those, four out of 10 said they had increased their direct investment activity in the last year.
“Family offices globally remain highly focused on direct investing, as they seek exposure to the key transformative technologies of tomorrow and attractively valued companies across sectors,” said Dawn Nordberg, head of integrated client engagement for Citi Wealth.
The adoption of artificial intelligence is also accelerating. The proportion of respondents who said they had deployed AI doubled since last year’s survey, with a particular focus on automating operational tasks and investment analytics.
Gaps in professionalisation and risk management
While the report reveals ongoing professionalisation among family offices, particularly in their investment functions, it also identifies areas needing further development. Approximately half of the respondents acknowledged being underprepared to address cybersecurity, personal security, and geopolitical risks.
“Our survey reveals ongoing professionalisation among family offices, particularly in the investment function,” explained Alexandre Monnier, head of global family office advisory for Citi Wealth. “It also identifies areas where further development is crucial, such as risk management and talent acquisition for non-investment services.”
