Weathering the Storm: How Canadian Family Offices Are Navigating Market Volatility

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Family offices in North America are taking a cautious approach this year after lacklustre returns in 2022, according to a recent report from RBC and Campden Wealth. However, Canadian family offices have a long-term outlook and are positioning their portfolios for future growth opportunities.

The North America Family Office Report 2023 analyzed survey responses from 330 family offices globally, including 144 based in North America. It found that the average family office portfolio achieved just a 1% return last year, dragged down by poor performance of public market assets like stocks and bonds.?

Focusing on Alternatives

In response, Canadian family offices are increasing their allocation to alternative investments like private equity, real estate, and hedge funds. These categories held up better last year and also provided an inflation hedge.?

According to the 2023 report, the largest allocation for North American family offices was to private markets, representing 29% of assets. This includes private equity, private debt, and venture capital. Direct private equity investments returned 5% in 2022, while private equity funds were up 3%.

Long-Term Growth Strategies

Despite current volatility, Canadian family offices are taking the long view. The survey found that 46% plan to prioritize a growth strategy by 2028. They also see opportunities in emerging technologies like AI, with 31% looking to increase exposure.?

Values-Based Investing

Canadian families are also emphasizing responsible investing. The report found that 41% of North American family offices are engaged in RI, motivated by a desire to invest in line with their values while also pursuing competitive returns.?

Planning for the Future

Intergenerational planning remains a key priority, with survey respondents highlighting the need to pass down family values and involve the next generation in the family office. As trusted stewards of generational wealth, Canadian family offices are positioning their portfolios to weather near-term storms while preserving capital for future heirs.

Contact Me to Learn More

To discuss these findings further and explore how you can adopt smarter investment strategies and plan for the long term, contact me at 604.613.1693 or [email protected]. I welcome the opportunity to speak with Canadian families and share perspectives on navigating these unprecedented times.

The source article, linked here, provides full details: What's over the horizon for North American family offices?

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