Feeling less bullish about their investments, nearly half (48%) of family offices are focusing on improving liquidity, while a third (33%) are de-risking portfolios, according to a new survey from RBC Wealth Management.
The survey found that family offices see the most significant near-term risks as stemming from the U.S.’ early tariff announcements, which 60% expect could constrain global growth. Other top concerns included inflation (55%), a global stock market drawdown (47%), and a potential U.S. recession (47%). Respondents also cited a lack of rate cuts from the Federal Reserve (39%), excessive government borrowing (32%), geopolitical actions from the “axis of resistance” (32%), European stagflation (29%), and sharply higher U.S. Treasury yields (23%).
Looking out two to five years, the biggest perceived risks shift toward excessive government borrowing (56%), onshoring of supply chains (31%), and dollar depreciation (31%).
Expected investment returns for 2025 averaged 5%, less than half of last year’s 11%. Roughly 15% of respondents said they anticipate negative returns, up sharply from just 1% a year ago. A majority (52%) said they believe cash will deliver the best return over the next 12 months. Among those seeking liquidity in public markets, favored sectors included artificial intelligence (32%), defense industries (29%), the “Magnificent Seven” (25%), and European equities (24%).
Three-quarters (75%) of respondents cited AI as the top investment theme likely to reward shareholders over the next two to five years, with clean energy (56%), growth equities (54%), and large-cap North American equities (41%) also topping the list.
While most family offices (88%) continued to hold private market investments, the segment’s share of total portfolios slipped slightly to 29% in 2025, down from 30% the prior year.
More than two-thirds (69%) of family offices said they have adopted automated investment reporting systems, up from 46% last year. In 2024, 11% of respondents noted they had implemented generative AI, while 30% indicated a desire to adopt it. This year, the percentage of those who have used gen AI in their investment reporting increased significantly to 29% and another 63% expressed interest in doing so.
“Compared to 2024, family offices have become notably more cautious stewards of capital,” said Adam Ratner, director of research for Campden Wealth, in the release. “They have moderated their investment expectations, developed stronger governing guidelines, and are actively looking for ways to be more efficient with their human capital.”
