Eyes on the Horizon: Goldman Sachs Investment Insights

The focus areas and interests of professionals managing the investment portfolios of ultra-high-net-worth families can be helpful to both family offices and non-family offices alike. As the macroeconomic and geopolitical backdrop evolved dramatically over the last year and capital markets were challenged, family offices have remained calm and kept a steady hand on the wheel.

A recently published report from Goldman Sachs, Eyes on the Horizon, explores how institutional family offices are allocating capital, leveraging the viewpoints of 165+ distinct family office decision makers globally.

This analysis shows family offices are:

• Maintaining their overall strategic allocation towards risk assets, with 48% planning to increase their public equities allocation alongside other private asset classes.
• While they have also held onto cash balances that have generated higher yields, 35% plan to opportunistically invest over the next 12 months.
• Overweight in sectors, such as information technology and health care, which are often at the center of innovation and disruptive technologies that resonate with family offices.
• And crystallizing their views on cryptocurrency, with the proportion “not invested and not interested in investing” reaching 62% from 39% in 2021.

Across both public and private markets, family offices have a bias toward sectors experiencing strong secular growth and business models that can transcend economic cycles. Additionally, family offices continue to maintain significant interest in operating businesses as they explore ways to strategically grow and support their existing complexes. To learn more about these trends and other top-of-mind topics, read the report, Eyes on the Horizon.