Unpredictable US policy has now surpassed inflation and interest rates as the leading concern for family offices, according to the Schroders Global Investor Insights Survey 2025.
The survey, carried out in April and May following President Trump’s “Liberation Day” tariff announcements, gathered responses from 90 family offices globally. It reflects a marked change in sentiment during the first half of 2025, said Philip Robotham, Schroders’ head of wealth in South Africa. Beyond the US, other geopolitical worries include China–Taiwan tensions, ongoing conflicts in Europe and the Middle East, and risks around energy and cybersecurity.
Robotham noted that these pressures have pushed resilience to the top of the agenda, with 56% of respondents prioritising portfolio durability through greater diversification and lower volatility over the next 12–18 months. Seeking return opportunities (34%) and generating income (9%) followed. Just 1% saw decarbonisation as a near-term priority, though 85% remain interested in long-term energy transition investments such as battery storage, nuclear and renewables.
Volatility is a shared concern: nearly two-thirds expect higher market swings in the year ahead than during the 2022–23 inflation shocks, and many anticipate turbulence on par with or worse than the eurozone crisis. As a result, 46% plan to lower their risk appetite, compared to 17% who will increase it.
Market concentration is another worry, with 78% pointing to the dominance of a handful of mega-cap stocks in the S&P 500, and 30% highlighting similar risks in the MSCI World Index. In response, almost three-quarters of family offices say they trust active managers to deliver value, and 86% expect to boost allocations to actively managed strategies this year.
Asset preferences are shifting accordingly. Private equity (51%) and public equity (48%) lead the list of attractive asset classes, with a focus on sector-specialist private equity. Within PE, small and mid-cap buyouts rank highest for return potential, ahead of venture capital, growth capital, and secondaries. For income generation, 81% see private debt and direct lending as offering the best risk-adjusted returns.
Robotham said the findings underline the rising appeal of active strategies as family offices navigate a year defined by heightened uncertainty and the drive for more resilient portfolios.
