How the wealthiest families invest: CNBC and Addepar launch Family Office Portfolio Tracker
A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign
A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. Public stocks are the largest and fastest-growing asset class for family offices, while their real estate assets are shrinking, according to the new CNBC Family Office Portfolio Tracker. Family offices now manage over $5.5 trillion in wealth globally, rivaling hedge funds in total assets. Yet because family offices – the private investment arms of ultra-wealthy families – aren't required to disclose their investments, their portfolios are largely secret.
CNBC has teamed up with Addepar, a foundational data and AI platform used by financial professionals globally, to provide a regular snapshot of family office portfolios. Addepar's data includes the portfolios of hundreds of family offices, ranging in size from $200 million in assets to over $10 billion, representing a total of $1.4 trillion in assets. The tracker will be released every quarter, showing how family offices are shifting their investments in stocks, bonds, private equity and other asset classes. It will include comparisons with the previous quarter, the previous year and previous five years, showing both the short-term and long-term trends.
The tracker is useful to family offices and ultra-high-net-worth investors looking for comparisons and benchmarks. It will also be valuable to the fast-growing industry of wealth management firms, advisors and funds vying for family office business. Family office wealth is expected to top $9 trillion by 2030, according to Deloitte, making the group increasingly powerful players in financial markets and the broader industry. "Many firms across the wealth and investment ecosystem look to family offices as an important indicator of how sophisticated investors are approaching their strategic and tactical asset allocation," said Eric Poirier, CEO of Addepar.
Poirier said family offices can shed light on ways to balance risk, liquidity, performance and diversification all while navigating changing market environments. "By bringing together an anonymized and aggregated view of cross-platform holdings, Addepar can help clients understand broader allocation trends and evaluate their own strategies over time," he said.
The BriefWire