Family Offices Shifted Assets Amid Inflation Fears
Global executives prioritize public equities to hedge against persistent inflationary pressure.
Updated on Sept. 30, 2026 in Investing
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Family office executives have identified persistent inflation as a top investment risk, driving a strategic shift toward public equities to preserve real wealth. Data from the Citi Wealth report highlights that these firms are adjusting liquidity management to navigate ongoing economic uncertainty.
Why it matters
Rising inflation has fundamentally altered how family offices approach portfolio construction and spending policies. By focusing on liquid assets, these entities seek to maintain capital growth while navigating the challenges of volatile global markets.
Nearly 90% of the 351 surveyed family office executives reported positive portfolio performance year-to-date. Currently, 41% of these firms are targeting annual returns ranging between 7% and 10%.
The players
Citi Wealth
This division of Citigroup provides financial services and research for high-net-worth clients and family offices globally.
The details
Executives are increasingly moving capital into public equities that offer high liquidity to mitigate inflation, while also pursuing direct co-investment opportunities in private markets. These decisions are designed to balance nominal returns with the preservation of real wealth.
Timeline
In 2025, tariff policy served as the primary defining factor for family office operations.
During 2026, global conflict and fluctuating interest rates dictated investment strategies.
As of year-to-date 2026, nine in ten family offices reported positive portfolio performance.
Market Dynamics
The Global Family Office Report from Citi Wealth serves as a benchmark for how institutional capital flows adapt to shifting macroeconomic cycles. The current trend marks a departure from previous years as firms recalibrate their exposure to address persistent inflationary risks.
Retail investors may observe broader market shifts as major family offices consolidate positions in high-liquidity public equities. This trend highlights the importance of liquidity management and inflation hedging in personal portfolio allocations during periods of global economic uncertainty.
The takeaway
Family offices are prioritizing asset preservation as a defensive measure against persistent inflation. Investors can implement similar strategies by maintaining a focus on high-liquidity assets that provide flexibility in volatile economic conditions.
Further reading
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Are you changing your personal investment or spending habits due to concerns about persistent inflation?
