Black Enterprise- Europe’s wealthiest families are planning to shift their investments further away from traditional assets into alternatives such as hedge funds and commodities, according to a new report.
The survey of European single family offices conducted by wealth management specialist Campden Media and investment bank Merrill Lynch found that alternatives would make up more than half of a typical family office portfolio in three years. The survey looked at 30 of them in 10 European countries, around 39% of whom managed more than 1 billion euro ($1.52 billion) in assets.
It showed a typical portfolio holding 55% of its assets in hedge funds, commodities, property, private equity and other alternatives in three years, compared with 48% now. Traditional investments such as stocks, bonds and cash would fall to 45% from their current level of 52%.
