Family Offices Remain Optimistic Despite Trade Wars and Tariffs-Induced Volatility
Despite a turbulent global landscape marked by trade wars, protectionist policies, and geopolitical uncertainty, family offices continue to demonstrate resilience and strategic foresight in their investment approaches.
A recent report by Citi Wealth reveals that family offices remain optimistic about portfolio performance, with many expecting returns in the range of 10%–15%, and 8% anticipating even higher gains. This confidence is underpinned by a shift toward defensive asset classes, geographic diversification, and hedging strategies, reflecting a proactive response to market volatility.
According to the same report, 2025 has seen a notable increase in allocations to defensive assets (25%) and diversified geographies (15%), while 14% of respondents have implemented hedging mechanisms to mitigate risk. Similarly, Goldman Sachs reports a growing appetite for private equity, with 39% of family offices planning to increase exposure, while BlackRock highlights the rising momentum in private credit.
This strategic repositioning is not only a reaction to macroeconomic pressures but also a reflection of the sector’s adaptability. Family offices are leveraging technological innovation, preparing for regulatory shifts, and embracing AI adoption to enhance portfolio management and operational efficiency.
Family Offices are increasingly investing in technologies that enhance portfolio performance and operational resilience. Priority is being given to advanced data analytics platforms, consolidated reporting tools, and robust cybersecurity and data protection solutions. While Artificial Intelligence (AI) and Machine Learning (ML) are gradually gaining momentum, their most immediate impact is seen in automating operational tasks and improving investment performance reporting and forecasting. However, broader adoption remains measured due to several factors, including limited internal expertise, cybersecurity concerns, and a general lack of awareness regarding available solutions. Additional barriers such as uncertainty around return on investment, budgetary constraints, and organizational resistance to change continue to slow the pace of AI integration across the sector.
Despite these challenges, forward-looking Family Offices are beginning to explore AI-driven solutions as part of their long-term digital transformation strategies, especially in areas like predictive analytics, risk management, and portfolio optimization.
Finally, as regional conflicts become a persistent feature rather than a temporary disruption, and with potential U.S. market deregulation on the horizon, the outlook for the global family office sector remains cautiously optimistic.
