Florida Realtors issued the following announcement on Oct. 14.
As a possible economic slowdown looms, the people who invest money for ultra-rich families are buying more real estate as a hedge against any possible downturn.
Adjusting to market volatility and girding for a recession, some family offices (investment firms that work for extremely high-worth families) in the U.S. are hedging their bets by shrinking their exposure to hedge funds and boosting their exposure to real estate.
That’s one of the key findings of a recently released 2019 report on family offices compiled by UBS and Campden Wealth Research. Principals and executives at 360 family offices around the world were questioned for the report, with one-third of them based in the United States. Nearly three-fourths of the family offices surveyed invest in real estate.
Globally, the report says, real estate experienced the biggest lift in portfolio allocations for family offices, accounting for an average of 17% of the pie. Meanwhile, family offices around the world trimmed their investments in hedge funds, bringing the total portfolio share down to an average of 4.5%, according to the report.
“We have been getting out of equities and putting money into bonds and real estate. We are also putting money aside to make purchases if there is a crash,” an unidentified family member of a single-family office in North America told the UBS and Campden researchers.
Original source can be found here.
Source: Florida Realtors