In this episode of Critical thinking, Michel Meert, European Consulting Leader for Endowments, Foundations and Family Offices, is joined by Marieke de Roo, European Sales Leader for Endowments, Foundations & Single-Family Offices, and Teena Jilka, Senior Investment Adviser to explore what’s top of mind for single-family offices over the next year and beyond. As inflation moves back toward target rates, the prospect of a soft landing seems increasingly likely. This shift in outlook is prompting investors — particularly single-family offices, which focus on long-term positioning — to consider what comes next.

Key takeaways include: 

Next-generation infrastructure: The role of infrastructure has evolved beyond the traditional use in a portfolio as the range of assets that it captures is much broader. Areas such as EV charging networks and data centres have the potential to create a compelling opportunity for family offices with a relatively longer-term investment horizon.  

Hedge funds as a potential driver of absolute return and diversification: As investors grapple with overconcentration in global equity markets, particularly the US, as well as heightened volatility, diversification is top of mind for family offices. Hedge funds may offer flexibility to capitalize on market volatility and market dislocation, which could make them potential alternatives to fixed income, given the higher for longer expected rate environment.

How family offices can structure their governance and investment processes: In this period of high volatility, having an investment committee with clear policies, guidelines, and risk tolerance levels is essential to help ensure disciplined decision making, focused on long-term objectives.