Appetite for risk among family offices is set to increase over the next year amid improved regulation of risker assets, according to new research by Ocorian.

The firm found that 82% of family office professionals, including those working for multi-family offices, believe their organisations’ appetite for investment risk will increase, while one in eight (12%) are expecting a dramatic increase.

Ocorian, which provides administrative solutions to the financial services sector, found that 62% of respondents expecting a rise in investment risk appetite said that increased regulation around riskier assets was the key reason for the increased risk tolerance, while 55% said they believe inflation has peaked, or will soon peak, which is creating an increased risk appetite.

The findings, which were based on interviews with 309 family office investment managers, also indicated that 47% pointed to increased transparency around riskier assets, while 44% said they believe markets are set to recover.

Ocorian also revealed that the vast majority (99%) of the study’s respondents, who collectively are responsible for around $155bn in assets under management, agreed that the switch to investing in alternative assets among family offices is a long-term trend.

Global head of private client at Ocorian, Annerien Hurter, said: “Family offices’ appetite for risk is increasing rapidly after many years when many were heavily focused on cash and took a very cautious approach to investing.

“The long-term trend of family offices increasing their exposure to alternative asset classes is certainly a factor in the growing appetite for risk and it is clear that improvements in regulation around riskier assets is proving popular with family offices.

“It remains essential for advisers and service providers alike to deeply understand the unique risk appetite and governance needs of each family, ensuring transparency and trust in every decision.”

---