{"id":885,"date":"2022-11-16T00:00:00","date_gmt":"2022-11-16T00:00:00","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-us\/newsroom\/2022-11-16\/2022-rbc-and-campden-wealth-report-north-american-family-offices-see-gains-focus-on-sustainable-investing-and-succession-planning-as-they-plan-for-future\/"},"modified":"2023-10-03T12:35:32","modified_gmt":"2023-10-03T16:35:32","slug":"2022-rbc-and-campden-wealth-report-north-american-family-offices-see-gains-focus-on-sustainable-investing-and-succession-planning-as-they-plan-for-future","status":"publish","type":"rbcwm_newsroom","link":"https:\/\/www.rbcwealthmanagement.com\/en-us\/newsroom\/2022-11-16\/2022-rbc-and-campden-wealth-report-north-american-family-offices-see-gains-focus-on-sustainable-investing-and-succession-planning-as-they-plan-for-future","title":{"rendered":"2022 RBC and Campden Wealth Report: North American family offices see gains, focus on sustainable investing and succession planning as they plan for future"},"content":{"rendered":"<p><strong>TORONTO (Nov. 16, 2022)<\/strong> &#8211; North American family offices were well poised to ride out the economic turbulence of 2022.     More than half grew their assets under management (AUM) in the year leading up to the downturn, despite concerns     about inflation and succession planning, according to a study by RBC and Campden Wealth. <\/p>   <p>More than three-quarters of families surveyed saw their wealth rise in 2022. The collective AUM across North American     family offices was estimated at US$182 billion. The average family represented from North America had wealth of US$2     billion. <\/p>  <p>Next Gens\u2019 influence continued to grow and drove more family offices to participate in sustainable investing. In     2022, 37% of North American family offices engaged in sustainable investing, up from 34% last year and 26% in 2019. <\/p>  <p>The proportion of their portfolios dedicated to sustainable investing has also increased over the years. In 2020, the     family offices in North America who engaged in sustainable investing dedicated an average of 16% of their portfolios     to sustainable investments. This grew to 20% in 2022, and is expected to rise to 31% in five years\u2019 time. The most     popular sustainable investing theme was climate change, with 77% reporting they invest in climate change mitigation.     Other areas of focus included investing in improving fresh water supply and managing water consumption (53%),     strengthening health and social care (49%) and reducing pollution\/waste (47%).<\/p>  <p>\u201cAs we stand at the center of the multi-trillion dollar transition to the next generation, we are clearly starting to     see their influence,\u201d said Mark Fell, Head of Family Office and Strategic Clients, RBC. \u201cWe are proud to help family     offices realize their ambitions present and future, informed by the insights of this year\u2019s North America Family     Office Report. We thank the many families we work with who contributed their perspectives to the report.\u201d<\/p>   <h3 class=\"wp-block-heading has-text-align-left\" >Succession planning lags, remains key to family wealth preservation<\/h3>  <p>Research firm Cerulli Associates projects that overall wealth transferred between 2021 and 2045 will total $84.4     trillion.<\/p>      <p>For North American family offices, 30% of Next Gens have already assumed control of their families\u2019 operations \u2013     with another 27% expected to do so within the next decade. However, only 33% of family offices have a succession     plan in place for senior leaders and 40% feel they do not have a next generation member qualified enough to take     over.<\/p>     <p>\u201cIt\u2019s essential to have important conversations about the family\u2019s goals and values with the next generation     to help preserve the family\u2019s wealth and legacy for future,\u201d said Angie O\u2019Leary, Head of Wealth Planning at RBC     Wealth Management. \u201cA succession plan is a must to adequately prepare the next generation to inherit wealth, and it     must be revisited often to ensure it reflects a family\u2019s changing needs, priorities and vision.\u201d <\/p>  <h3 class=\"wp-block-heading has-text-align-left\" >Investments in healthcare, other emerging technologies expected to increase <\/h3>   <p>The pandemic and an aging population made healthcare an attractive space for investors. Three in four family offices     invested in healthcare this year and 39% plan on increasing their investment in 2023.<\/p>  <p>Biotech, which 62% of North American family offices invested in, was the second most popular technology for     investment, followed by fintech (59%), digital technology (52%) and green tech (50%). <\/p>  <p>Looking to 2023, outside of healthcare, the areas most likely to see a rise in allocations are artificial     intelligence, with 40% of those invested there planning to increase their allocations, green tech (35%) and biotech     (34%).<\/p>   <h3 class=\"wp-block-heading has-text-align-left\" >Economic climate moves investors toward private equities<\/h3>    <p>A notable 81% of those surveyed cited investment risk as the number one threat to family offices and, consequently,     more shifted away from a growth approach to a more balanced investment strategy. This year, 51% of family offices     employed a balanced strategy compared to 47% in 2021.<\/p>  <p>To help mitigate inflation effects, family offices have leaned into private equity, real estate and commodities over     the year. This trend is likely to persist as 46% said they would allocate more to private equity funds and 41% to     direct investments in 2023, with 35% planning to allocate more specifically to venture capital and 34% to private     debt\/direct lending. Another 41% plan on allocating more to real estate.<\/p>  <p>North American family offices outperformed their peers with an average portfolio return of 15% in 2022 compared to     13% in Europe, 10% in Asia-Pacific and a 13% global average. This performance is largely attributed to strong gains     within private equity. Venture capital stole the show, with an average return of 26%, followed by private equity     funds and direct private equity at 22% and 21% respectively. <\/p>  <p>\u201cFamily offices\u2019 view of the economic climate has soured over the year amid sharp rises in inflation and interest     rates. With that said, their investment performance has been strong in recent years, despite the pandemic. This     shows that family offices are well-poised to tackle turbulent economic conditions,\u201d said Dr. Rebecca Gooch, Senior     Director of Research at Campden Wealth. \u201cThey are nimble investors with ample cash reserves, diverse portfolios and     a long-term outlook, thus they\u2019re able to ride economic waves while also capitalizing on opportunistic deals.\u201d <\/p>    <h4 class=\"wp-block-heading has-text-align-left\" >About the 2022 Report<\/h4>  <p>The results noted above can be found within The North America Family Office Report 2022. <\/p>  <p>The data for this series was collected between March and July 2022. This data includes a survey that was completed by     382 family offices worldwide, with 179 (47%) being from North America. In-depth interviews were also conducted with     32 family office executives, with 15 of these being from North America. Single and private, not commercial,     multi-family offices were included in the analysis this year. The report defines multi-family offices as entities     that serve no more than eight families and whose core family holds at least 50% of the family office\u2019s total AUM. <\/p>  <p>Please click <a href=\"\/en-ca\/campaign\/the-north-america-family-office-report\">here<\/a> to download the full report. <\/p> <p><strong>Past performance is not a guarantee of future results.<\/strong><\/p>   <h4 class=\"wp-block-heading has-text-align-left\" >About RBC<\/h4>  <p>Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering     leading performance. Our success comes from the 92,000+ employees who leverage their imaginations and insights to     bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada\u2019s     biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business     model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S.     and 27 other countries. Learn more at <a href=\"https:\/\/www.rbc.com\/\" target=\"_blank\" class=\"link-icon\" rel=\"noopener\">rbc.com              <\/a>.<\/p>   <p>We are proud to support a broad range of community initiatives through donations, community investments and employee     volunteer activities. See how at <a href=\"https:\/\/www.rbc.com\/community-social-impact\" target=\"_blank\" class=\"link-icon\" rel=\"noopener\">www.rbc.com\/community-social-impact<\/a><\/p>    <h4 class=\"wp-block-heading has-text-align-left\" >About RBC Wealth Management \u2013 U.S.<\/h4>  <p>In the United States, RBC Wealth Management operates as a division of RBC Capital Markets, LLC. Founded in 1909, RBC     Wealth Management is a member of the New York Stock Exchange, the Financial Industry Regulatory Authority, the     Securities Investor Protection Corporation, and other major securities exchanges. RBC Wealth Management has $510     billion in total client assets with more than 2,100 financial advisors operating in 184 locations in 42 states.<\/p>   <h4 class=\"wp-block-heading has-text-align-left\" >About Campden Wealth<\/h4>   <p>Campden Wealth is a family-owned, global membership organization providing education, connectivity, research and     networking opportunities to families of significant wealth, supporting their critical decisions, helping to achieve     enduring success for their enterprises and family offices, and preserving their family legacy.<\/p>  <p>Campden Research supplies market insight on key sector issues for its client community and their advisers and     suppliers. Through in-depth studies and comprehensive methodologies, Campden Research provides unique proprietary     data and analysis based on primary sources.<\/p>  <p>Campden Wealth owns the Campden Club, a private, qualified and invitation-only members club representing     multi-generational business owning families, family offices and private investors across 39 countries, and the     Institute for Private Investors (IPI), the pre-eminent membership network for private investors in North America.     Campden further enhanced its international reach with the establishment of Campden Family Connect PVT. Ltd., a joint     venture with the Patni family in Mumbai in 2015.<\/p>  <p>For more information: <a href=\"https:\/\/www.campdenwealth.com\" target=\"_blank\" class=\"link-icon\" rel=\"noopener\">www.campdenwealth.com              <\/a><br \/>     Enquiries: <a href=\"mailto:research@campdenwealth.com\" class=\"link-email\">research@campdenwealth.com<\/a><\/p>  <p><em>Securities offered through RBC Wealth Management. RBC Wealth Management is not affiliated with Campden         Wealth.<\/em> <\/p>   <h4 class=\"wp-block-heading has-text-align-left\" >Media Contacts: <\/h4>  <p><strong>RBC:<\/strong><br>     Greg Skinner, RBC Wealth Management Canada, (416) 294-5579, <a href=\"mailto:greg.skinner@rbc.com\"         class=\"link-email\">greg.skinner@rbc.com<\/a><br>     Megan Boldt, RBC Wealth Management US, (651) 245-9153, <a href=\"mailto:megan.boldt@rbc.com\"         class=\"link-email\">megan.boldt@rbc.com<\/a> <\/p> <p><strong>Campden Wealth:<\/strong><br>     Dr. Rebecca Gooch, Senior Director of Research, Campden Wealth, +44 (0) 7771 917076, <a         href=\"mailto:megan.boldt@rbc.com\" class=\"link-email\">rebeccagooch@campdenwealth.com<\/a> <\/p>","protected":false},"excerpt":{"rendered":"<p>TORONTO (Nov. 16, 2022) &#8211; North American family offices were well poised to ride out the economic turbulence of 2022. More than half grew their assets under management (AUM) in the year leading up to the downturn, despite concerns about inflation and succession planning, according to a study by RBC and Campden Wealth. More than [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"template":"","meta":{"_acf_changed":false,"editor_notices":[],"rbc_url_alias":"","footnotes":""},"rbcwm_solution":[],"rbcwm_newsroom_category":[49],"class_list":["post-885","rbcwm_newsroom","type-rbcwm_newsroom","status-publish","hentry","rbcwm_newsroom_category-insights-and-commentary"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.8 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>2022 RBC and Campden Wealth Report: North American family offices see gains, focus on sustainable investing and succession planning as they plan for future - RBC Wealth Management<\/title>\n<meta name=\"description\" content=\"TORONTO (Nov. 16, 2022) - North American family offices were well poised to ride out the economic turbulence of 2022. 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