Asia-Pacific Family Offices Boost Hedge Fund Allocations, Says Cambridge Associates

Asia-Pacific family office hedge funds allocations are increasing as wealthy investors redeploy gains from the region’s strong equity markets into alternative investment strategies, according to Cambridge Associates.

Hedge fund allocations among some family office clients can reach between 20% and 25% of portfolios, while very few allocate less than 10%, Eugene Snyman, Cambridge Associates’ Asia-Pacific regional head, told The Business Times.

Snyman said family offices are incorporating alternatives into broader portfolio strategies as favourable market conditions create opportunities to redeploy investment profits.

The trend highlights the growing role of hedge funds and other alternative and private-market strategies within Asia-Pacific family office portfolios.

Wealthy investors are increasingly looking beyond traditional equities and bonds to improve diversification, manage portfolio risks and access additional sources of returns.

Snyman made the comments during a visit to Singapore in August.