Family Offices' Portfolios Gain This Year; Inflation, Succession Weigh On Minds – Citi Wealth

Editorial Staff

23 September 2026

The vast majority of more than 350 family offices surveyed worldwide by Citi Wealth have reported positive portfolio returns since the start of 2026, with 41 per cent of them continuing to set their sights on annual returns in a range of 7 to 10 per cent.

Clients are optimistic but not complacent as moderate expectations for returns coexist with concerns about inflation, interest rates and financial stability. Long-term discipline remains a crucial competitive advantage, the 2026 Global Family Office Report said.

Family offices avoided wholesale portfolio repositioning, choosing to actively manage money, employ hedging strategies and make targeted changes amidst geopolitical turmoil.

More than 40 per cent of respondents made no major changes, while others remained focused on improving portfolio resilience without compromising their strategic objectives, the report said.

Inflation is a worry, and a leading concern, followed by interest rate moves, financial stability and market volatility, the report said. Tariffs and trade disputes, which were top of mind in 2025, have become far less of a concern.

One shift from last year has been the renewed momentum in listed equities; almost half of the respondents raised public equity exposure this year, making it the top destination for new capital. Global developed equities ranked as the most favored asset class for future net allocations.

Although private markets remain a “strategic pillar” of family office portfolios, direct investing outside of collective structures is continuing to increase. Family offices are becoming more selective with a greater emphasis on sourcing, expertise and differentiated access.

In other trends, family offices are becoming more professional in areas outside investing, such as operational planning succession and organizational development.

AI inevitably makes an appearance in the report. Family offices are deploying AI across investment analysis, information management, reporting, workflow automation and decision support processes, Citi Wealth said.

The report also touched on how family wealth is becoming more international, opening up cross-border implications with respondents reporting assets, businesses and family members located across multiple jurisdictions.

On the ever-present topic of succession, the report found that about one-third of respondents anticipate leadership transitions in their family, family office, or family business within the next five years.

Citi Wealth found that respondents cite unclear succession plans, insufficient readiness among future leaders and lack of alignment on future vision as significant challenges.