Report: Family offices in Asia Pacific strongly prefer to invest in innovative fields such as artificial intelligence in 2024

The Zhitong Finance App learned that BNP Paribas Wealth Management and Campden Wealth released the “2024 Asia Pacific Family Office Report”. According to reports, the study covered 360 family offices around the world, 76 from the Asia-Pacific region. Of these, 65% of Asia-Pacific family offices have implemented succession plans, which is higher than the rest of the world. Dominic Samuelson, CEO of Campden Wealth, said research shows that family offices in the Asia Pacific region strongly prefer direct investment in terms of investment choices, especially in innovative fields such as artificial intelligence, healthcare, and renewable energy.

The above report shows that family offices in the Asia-Pacific region are leading the world in terms of succession planning, breaking the traditional impression that the governance structure was not formal in the past. Research shows that family offices in Asia Pacific prioritize a robust framework centered on family communication and care for older members rather than focusing mainly on investment risk management, which is clearly different from European and North American family offices. However, “insufficient qualifications for the next generation (44%)” and “too young (38%)” are the main reasons why inheritance plans have not yet been formulated.

Arnaud Tellier (Arnaud Tellier), Asia Pacific CEO of BNP Paribas Wealth Management, said that the Asia Pacific Family Office currently leads the world in structural succession planning, confirming that the Asian family does not simply copy the global model, but rather carefully adjusts the governance structure according to its unique pace. Although there are differences in family backgrounds across the Asia-Pacific region, the common trend is “specialization” because they are aware of the need to establish a perfect structure and professional team. Another trend is “diversification.” Many business owners have begun to diversify their investments to avoid excessive concentration in their original industries or regions, which has also prompted them to seek help from institutions. Wealth creation continues in Asia, and these trends will persist for a long time.

According to the data, 32% of family offices list diversification as a current investment priority. The report emphasizes that the investment focus of family offices in the Asia-Pacific region has changed, mainly due to factors such as the growing relevance of the open market and the need to diversify portfolios. Additionally, the Asia Pacific Family Office includes the inclusion of alternative assets such as hedge funds, commodities and gold, and even private market investments to diversify investments.