Family Offices Make Tactical Changes

In response to the 2008 financial crisis, family offices that oversee ultra high-net worth European and American families made tactical adjustments. A 2011 survey of 40 single-family offices in the U.S. and Europe managing median assets of $534 million produced the following information:

• 62% increased liquidity and cash reserves
• 49% rebalanced portfolios
• 43% actively reduced portfolio risk
• 41% conducted more projections of cash flow and capital calls.

A little over ¼ of the firms changed their asset allocation approach. The most significant change that offices made though was monitoring outside investment managers. ¾ of respondents reviewed managers more closely.

See Michael S. Fischer, Ultra-Wealthy Families Made Tactical, Not Strategic Changes Post-2008, AdvisorOne, Jan. 20, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing  (PLM, Inc.)) for bringing this article to my attention.