According to Citi Wealth's 2026 Global Family Office Report, 90% of the world's wealthiest family offices have reported gains this year, despite market volatility caused by the Middle East conflict. The report, based on 351 family offices across 41 countries, shows that nearly nine in ten respondents reported positive portfolio performance year-to-date, with 41% continuing to target annual returns of 7% to 10%. Nearly 60% of respondents reported portfolio gains between 0 and 10%, while 13% reported an increase of more than 15%, and only 5% experienced negative returns. The report indicates that nearly 72% would wait for a drawdown of 11% or more before rethinking strategy, demonstrating their commitment to long-term investing rather than reacting to short-term volatility.
According to reports from CNBC TV18, Citi Wealth would have welcomed a deeper stock-market correction this year, viewing any bigger pullback as an opportunity to buy. The wealth management division believes that strong corporate earnings continue to underpin equities, creating favorable conditions for strategic investments. As Citi Wealth head of portfolio advisory Jeanne Sun told CNBC's "Squawk Box Asia" on Thursday, "We wouldn't have minded a little bit more of a correction." Sun emphasized that "the fundamentals are so strong, earnings growth is so resilient," making it actually a good opportunity to buy. However, the firm notes that shallow market pullbacks have limited attractive buying opportunities in 2024, despite maintaining its positive equity stance.
As reported by CNBC TV18, Jeanne Sun, head of portfolio advisory at Citi Wealth, stated during an interview on CNBC's "Squawk Box Asia" on Thursday that the firm wouldn't have minded a little bit more of a correction. Sun emphasized that "the fundamentals are so strong, earnings growth is so resilient," making it actually a good opportunity to buy. She noted that "We were hoping for more of that, and what we've seen all year is that pullbacks and corrections have been amazingly shallow." The wealth management division maintains that strong corporate earnings continue to underpin equities, creating conditions where market corrections could present valuable buying opportunities for sophisticated investors. Citi Wealth maintains a bias toward equities heading into the fourth quarter, even as higher interest rates and elevated Treasury yields have raised questions over how long stocks can withstand rising borrowing costs.
According to the CNBC TV18 report, Citi Wealth views the current market environment as particularly attractive for strategic investments. The wealth management division believes that strong corporate earnings continue to underpin equities, creating conditions where market corrections could present valuable buying opportunities for sophisticated investors. As Sun explained, "Equities is still the place to be because earnings have been fundamentally strong." The firm maintains a bias toward equities heading into the fourth quarter, even as higher interest rates and elevated Treasury yields have raised questions over how long stocks can withstand rising borrowing costs. Citi Wealth does not see a key Treasury yield threatening equities yet, as consumer spending and corporate capex remain resilient and mortgage rates above 7% have not caused significant slowdown.
According to Citi Wealth's 2026 Global Family Office Report, public equities hold the biggest share at 30% of family office portfolios, followed by fixed income at 16% and cash at 12%. Direct real estate holds 10%, while private equity funds and direct private equity hold 9% each, and hedge funds are just 4%. Looking ahead, 37% plan to raise exposure to global developed equities, while only 5% plan to cut. Citi Wealth notes that public equity had the highest net increase, at 34 percentage points, followed by private equity and cash, at 15 percentage points. The report indicates that North America is the top pick for fresh money, with 39% planning to increase exposure and only 6% planning to cut, while Asia Pacific excluding China is next at 29%.
According to Citi Wealth's 2026 Global Family Office Report*, inflation worried nearly two-thirds of respondents, with interest rates coming next at 44%, then the stability of the global financial system at 38%. Market volatility stood at 34% and the Middle East conflict at 32%. After the Middle East shock, 41% made no changes, another 34% opted for active management, and 27% used hedging. Asia Pacific was the most hands-on region, with 62% citing active management, while in North America, 60% did not adjust. The report emphasizes that family offices largely focused on making surgical, strategic adjustments rather than wholesale changes to their portfolio over the past 12 months.
