Challenges, Innovations, and Opportunities
 

This month, Institutional Investor released its second annual Global Asset Management Survey. Last fall, II surveyed 375 investors and asset managers globally about portfolio allocation, investment decision-making, and strategic risks by geography and distribution channel.

The research shows a notable shift in family office concerns from II’s inaugural research in 2024.

Perhaps the starkest finding of the report is that geopolitical risk has overtaken technology as the dominant concern for family offices. A whopping 81 percent listed geopolitical instability as their greatest concern, with macroeconomic risk, the potential for a debt crisis, and a global recession following closely behind.

According to the survey, the change in the last year is due to fallout from tariffs, wars, uncertain supply chains, and domestic political turmoil in the largest economies in the world.

Family offices are far more gloomy about the global economy and markets than other institutional investors. Thirty percent of respondents reported being pessimistic or very pessimistic, compared with just 15 percent across all investors.

Geopolitics is not the only risk. Respondents still identified technology and artificial intelligence among the dominant forces shaping investor sentiment. Over half of respondents said the use of technology, AI, and data to enhance reporting and transparency is a priority, as well as integrating AI and data science into the investment process itself.

My colleague James Comtois has also analyzed what the findings mean for pensions, endowments, and other institutions. You can read the article here.

You can expect more analysis here over the coming weeks. If you want a more detailed walk through or have any questions, don’t hesitate to reach out.