Family offices cut return outlook in 2025: Lombard Odier

Single family offices (SFOs) trimmed their long-term return expectations across most asset classes in 2025 amid rising macroeconomic uncertainty, according to Lombard Odier’s Rethink Family Wealth report. High-yield bonds saw the sharpest decline in 10-year return forecasts, falling from 7.6% to 5.8%, while U.S. equities dipped to 7.2% from 7.8% in 2024. Gold was the only asset class with improved outlook, rising from 4% to 4.5%. The report, based on surveys conducted in November 2024, also found SFOs maintain a higher cash allocation—averaging 9%—than other institutional investors, and a 29% exposure to alternatives, second only to endowments. Larger SFOs show investment patterns similar to US endowments, while smaller ones reflect balanced portfolio models.