Wealthy families pile into bonds, private equity while shedding stocks

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Wealthy families loaded up on bonds and private equity investments in the first half of the year while slashing their stock exposure, according to a survey by Citigroup's private bank. More than half of the 268 family offices polled, accounting for a combined net worth of $565 billion, increased their allocations in fixed income, while 38% boosted their private equity holdings. The shifts were the largest since Citigroup began the study in 2020.

By Tatiana Bautzer

More than half of the 268 family offices polled, accounting for a combined net worth of $565 billion, increased their allocations in fixed income, while 38% boosted their private equity holdings. By contrast, 38% reduced their allocation in stocks.Investors sought out private equity investments in the first half while the market for initial public offerings stayed sluggish. But the private equity investments are more conservative now than in previous years.

The biggest worries among respondents were inflation, rising interest rates and uncertainty stemming from U.S.-China tensions.

 

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