The Production of wealth is not the work of any one man and the acquisition of great fortune is not possible without the co-operation of multitudes of men.- Peter Cooper

As global growth expectations sway between exuberance and gloom, the performance of any investment portfolio is put to the test. While the US hails the end of quantitative easing to the disappointment of market players, fears in Europe have been dampened by sufficient short-term financing. Asian markets continue to correlate with China and Japan, impacted by mixed signals about economic potential. The bulls and bears divide is far from over, and it is evident that the worldhas not stabilized yet. In a persistently complex environment, family offices have to prepare to be fast on their feet in order to protect their wealth. HNWIs cannot afford to keep their assets idle and exposethemselves to the risk of losses. It will take a prudent eye to single out real opportunities in the troubled Eurozone, the emerging economies of Asia or the US market as it inches its way through recovery. Wealthy investors must acquire genius affinity in picking investments and side with those asset managers who can deliver stable robust returns.

Multi-Family Office

Single-family office

Business conglomerate

Trust & Foundation

48

31

2

2 1

10

42

13

202

2 AustraliaChina

Hong Kong

India

MalaysiaSingapore

Taiwan

Thailand

In 2012 we worked with 83 family offices in Asia, which were a Mix of Single-Family Offices, Multi-Family Offices, Trust’s & Business Conglomerates. Although Family offices represented the whole of Asia Pacific, the majority were from Hong Kong, Singapore & China.

0

10

20

30

40

50

26

41

36 6

1

Family Offices The Cumulative AUM of 83 family offices stood at over $50bn(Approx).

The minimum AUM for a Family Office to work with us was $100mn.

When segregating the Family Offices on the basis of AUM of 83 investors,

41 had AUM b/w $100mn-$500mn,26 F.O’s had min. $100mn, 6 F.O’s held

AUM b/w $500mn-$1bn & above $1bn each & 1 had over $40bn.

28

6

25

17

93

9

Equity Products

Mutual Funds

Fixed Income & Money Market

Bonds

Currency Management

Risk Management

Portfolio Management Monitoring

Based on the asset allocation strategies provided by these family offices for the next 6-18 monthswe have identified that among the traditional Asset classes, we saw a considerable interest in Equity & Fixed Income Products, which were requested by 28 & 25 Family offices respectively, followed by Bonds which were requested by 17& Mutual Funds by 6.

Family Offices indicated that Currency Management(9),Portfolio Performance(9) & Risk Management(3) also as one of their key priorities.

21

9

17

40

26

10

17

18

27

0 20 40 60

Emerging Market

Fund of Funds

Infrastructure Investments

Private Equity

Real Estate

Venture Capital

Absolute Return

Commodities /Managed Futures

Hedge Funds

Preferred Alternatives

In the alternative space we see Asian Family Offices being more aggressive in allocating assets in alternative strategies as compared to institutional investors.

The fig. alongside displays the number of investors requesting different alternative asset classes indicating that Private Equity was a preferred strategy for most of the investors,which we see was specified by 40 investors Hedge Funds by 27, Real Estate by 26 & 21 Family Offices mentioned Emerging Market Funds among others.

11

11

43

Other Alternative Strategies

Distressed Investments

Exchange-Traded Funds

Insurance-linked ProductsPassion Investments & Collectibles

Unlike in the recent past, Asian investors have shown interest in allocating their assets to other niche alternative strategies as a part of their overallPortfolio diversification, and this is quite evident as 11 family offices were looking for Distressed Investments & ETF’s each. ILS & Passion Investments were specified by 4 & 3 F.O.’s

When comparing with European & North AmericanFamily Offices who have been investing in these niche asset classes over several years. Althoughthere is tremendous potential for these asset classesin Asia, however significant promotion & education needs to be done in order for it to acquire a position in the portfolios of Asian Family Offices.

13

7

11

Energy & Forestry

Energy

Farmland/Forestry/Agriculture

Renewables & Cleantech

For the sustainability of any economy Energy has always been a key aspect for growth & so is the case in Asia which is home to 2 of the worlds fastest growing economies namely China & India.

Considering the importance of energy (traditional & alternative) for growth, Family Offices have identified it to be an attractive alternative investment sector.

Investments in Agriculture & Forestry have been gaining lot of attraction from Family Offices because of its non Correlation to volatile markets.

4315

21

4 225

34

Geographical Preferences

Asia

Europe

North AmericaLatin AmericaAfrica

Australia

When asked about their geographical preferences for their future investments in the next 6-18 months 41 investors specified their interest to continue investments in their own region while actively seeking attractive investment opportunities overseas.

25 Family Offices are pursuing investment opportunities in the Pacific, 21 in North America, 15 in Europe, 4 in Latin America & 2 in Africa specifically.

Apart from continental bifurcation, 34 Family Offices were looking at Global opportunities.