Asia Family Offices Turn Cautious in 2025, Favouring Cash

Asia family offices turned more cautious in 2025, with expected average portfolio returns falling to 6% from the 10% respondents had anticipated in 2024, as market volatility and concerns over US tariffs and fiscal policy clouded the outlook, according to Campden Wealth and BNP Paribas Wealth Management.

Cash was seen as the most rewarding asset class over the next 12 months, while private markets still made up 24% of average portfolios, second only to public equities at 27%.

Respondents identified US dollar depreciation as the top near-term risk, reflecting their sizable US exposure.

The report, based on 76 Asia-Pacific family offices with average family wealth of USD1.3bn, also found rising use of AI in risk management and reporting, but limited succession planning across the region for many families in transition, underscoring a more defensive Asia family offices outlook.