Family offices: Staying flexible while fine-tuning the investment engine
The Marsh Global Asset Owner Barometer 2026[1] reveals the strategic playbook for family offices, and how you can apply these insights to your portfolio in 2027.
Family offices are entering the year ahead staying flexible as they fine-tune their investment approach for the changing market environment.
Our research shows how family offices are:
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Maintaining optionality while repositioning across geographies and asset classes
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Managing private markets strategically with greater selectivity and focus
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Protecting portfolios using a broader toolkit of risk management strategies
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Embedding AI and technology into their investment processes
Family offices are focusing on four connected themes for 2027
Higher cash isn't a risk-off move. It's a deliberate strategy to deploy selectively into emerging markets, infrastructure, and evolving opportunities as they arise.
- 59% adjusted geographic exposure in the past year
- 50% increased liquidity or cash holdings
- 59% plan to increase infrastructure allocations
With near-universal exposure (97% of family offices), approaches to private markets are evolving, as asset classes and investor programmes mature.
- 31% are increasing the pace/scope of commitments across multiple private market strategies
- 25% are rotating within private markets rather than expanding total exposure
- 48% cite valuations and exit environment as critical considerations
Family offices are using a range of strategies and portfolio tools to strengthen portfolio protection and preserve flexibility.
- 44% plan to increase allocations to hedge funds and absolute return strategies
- 25% have shortened the duration of fixed income assets during the past 12 months
- 28% have increased the use of derivatives and overlays across the portfolio
Technology is reshaping both what family offices invest in and how they make investment decisions. Family offices also lead institutional peers in deploying technology.
- 78% consider AI and technology disruption significant to portfolio decisions (vs. 71% of peers)
- 56% use AI for data management and knowledge retrieval (vs. 46% of peers)
- 50% deploy AI for risk monitoring and scenario analysis (vs. 41% of peers)
- 53% have AI tools as a capital-expenditure priority
