BNP Paribas survey: Family offices in the Asia-Pacific region shift to defensive strategies, with cash and liquid assets becoming the most favored categories

BNP Paribas Wealth Management and Campden Wealth released the latest "2025 Asia-Pacific Family Office Report," showing that family offices in the Asia-Pacific region prioritize liquidity and balanced allocation; they are confident in the long-term investment prospects of the private equity market; cash and liquid assets are the most favored asset classes for the next 12 months, with portfolios tending towards more balanced allocations and widespread engagement in charitable causes, gradually shifting towards a greater emphasis on structure and governance.

Under the influence of market volatility and geopolitical uncertainty, family offices in the Asia-Pacific region are adopting a more defensive approach to investment decisions in the short term, focusing on enhancing liquidity and diversifying risks. However, despite a cautious short-term stance, the private equity market remains a core pillar of long-term investment strategies, reflecting that families still believe private equity assets can drive intergenerational wealth growth.

During the survey period (March to June 2025), cash and liquid assets were the most favored asset classes for the next 12 months, clearly reflecting that portfolio strategies are shifting towards more balanced allocations. Compared to the investment orientation in 2024, which was more cautious with growth stocks as the main investment theme, respondents' average expected return for 2025 is about 6%, reflecting a more cautious outlook on return expectations amid increased market volatility, with a greater focus on investment resilience.

Arnaud Tellier, CEO of BNP Paribas Wealth Management Asia, stated that recent geopolitical events reflect that various asset classes in the market can be repriced without warning. Although the report reflects intentions for 2025, its messages are still very relevant today, emphasizing building resilience through diversified investments, retaining flexibility through strategic asset allocation, and ensuring that portfolios align with the family's broader goals, including charitable endeavors