2. The Production of wealth is not the work of any one man and the acquisition of
great fortune is not possible without the co-operation of multitudes of men.
- Peter Cooper
As global growth expectations sway between exuberance and gloom, the performance of any
investment portfolio is put to the test. While the US hails the end of quantitative easing to the
disappointment of market players, fears in Europe have been dampened by sufficient short-term
financing. Asian markets continue to correlate with China and Japan, impacted by mixed signals about
economic potential. The bulls and bears divide is far from over, and it is evident that the world
has not stabilized yet. In a persistently complex environment, family offices have to prepare to be fast
on their feet in order to protect their wealth. HNWIs cannot afford to keep their assets idle and expose
themselves to the risk of losses. It will take a prudent eye to single out real opportunities in the troubled
Eurozone, the emerging economies of Asia or the US market as it inches its way through recovery.
Wealthy investors must acquire genius affinity in picking investments and side with those asset
managers who can deliver stable robust returns.

3. In 2012 we worked with 83 family offices in Asia, which were a Mix of Single-Family Offices, Multi-Family
Offices, Trust’s & Business Conglomerates. Although Family offices represented the whole of Asia Pacific,
the majority were from Hong Kong, Singapore & China.
Trust & 2 2 1 Australia
Foundation
2
China
20 10
Business Hong Kong
2
conglomerate
India
3
Malaysia
Single-family 1
31
office Singapore
42 Taiwan
Multi-Family 48 Thailand
Office

4.  The Cumulative AUM of 83 family offices stood
Family Offices
at over $50bn(Approx).
50
41
 The minimum AUM for a Family Office to work
40 with us was $100mn.
26
30  When segregating the Family Offices on the
basis of AUM of 83 investors,
20 41 had AUM b/w $100mn-$500mn,
26 F.O’s had min. $100mn, 6 F.O’s held
6 6
10 AUM b/w $500mn-$1bn & above $1bn each &
3
1 1 had over $40bn.
0

5. Equity Products
Based on the asset allocation strategies provided
by these family offices for the next 6-18 months
Mutual Funds we have identified that among the traditional
Asset classes, we saw a considerable interest
9 Fixed Income & in Equity & Fixed Income Products, which were
3
28 Money Market requested by 28 & 25 Family offices respectively,
9
followed by Bonds which were requested by 17
Bonds
& Mutual Funds by 6.
17 6
Currency Family Offices indicated that Currency Management(9),
25 Management Portfolio Performance(9) & Risk Management(3) also
as one of their key priorities.
Risk Management
Portfolio Management
Monitoring

6. Preferred Alternatives
Hedge Funds
27
Commodities /Managed In the alternative space we see Asian Family
Futures 18
Offices being more aggressive in allocating
Absolute Return assets in alternative strategies as compared to
17
Venture Capital
institutional investors.
10
Real Estate
26
The fig. alongside displays the number of
investors requesting different alternative asset
Private Equity
40 classes indicating that Private Equity was a
Infrastructure Investments
17
preferred strategy for most of the investors,
which we see was specified by 40 investors
Fund of Funds
9 Hedge Funds by 27, Real Estate by 26 & 21
Emerging Market Family Offices mentioned Emerging Market
21
Funds among others.
0 20 40 60

7. Unlike in the recent past, Asian investors have Other Alternative Strategies
shown interest in allocating their assets to other
niche alternative strategies as a part of their overall
Portfolio diversification, and this is quite evident
Distressed
as 11 family offices were looking for Distressed Investments
Investments & ETF’s each. ILS & Passion
Investments were specified by 4 & 3 F.O.’s 4
3
11
Exchange-
Traded Funds
When comparing with European & North American 11 Insurance-
Family Offices who have been investing in these linked
niche asset classes over several years. Although Products
there is tremendous potential for these asset classes Passion
Investments &
in Asia, however significant promotion & education Collectibles
needs to be done in order for it to acquire a
position in the portfolios of Asian Family Offices.

8. Energy & Forestry For the sustainability of any economy Energy has
always been a key aspect for growth & so is the
case in Asia which is home to 2 of the worlds fastest
growing economies namely China & India.
Energy
Considering the importance of energy (traditional
11 13 & alternative) for growth, Family Offices have
Farmland/Forestry/ identified it to be an attractive alternative investment
Agriculture
7 sector.
Renewables &
Cleantech Investments in Agriculture & Forestry have been
gaining lot of attraction from Family Offices because
of its non Correlation to volatile markets.

9.  When asked about their geographical
Geographical preferences for their future investments in the
Preferences next 6-18 months 41 investors specified their
Asia interest to continue investments in their own
42 region while actively seeking attractive
25 Europe investment opportunities overseas.
21 34  25 Family Offices are pursuing investment
North opportunities in the Pacific, 21 in North
43 America America, 15 in Europe, 4 in Latin America & 2
Latin in Africa specifically.
15
America  Apart from continental bifurcation, 34 Family
Africa Offices were looking at Global opportunities.
Australia