CHICAGO, Apr. 15, 2015 (GLOBE NEWSWIRE) -- A new study from Family Office Exchange (FOX), a global membership organization of enterprise families and their key advisors, has found a strong correlation between family offices’ investment performance and reliance on a CIO and investment committee.
Among top performers in this survey, 93% say they have an investment committee and 87% reported having a CIO. This group saw an average pre-tax investment return of 15% in 2014, while the average return for all survey participants was just 7%.
These findings surfaced in FOX’s 2015 Global Investment Survey, an annual survey of investor attitudes and behaviors that provides readers with peer perspective on a wide range of topics, including Economic Outlook, Investment Objectives and Time Horizon, Asset Allocation and Performance, Use of Investment Professionals and Committees, Reliance on Alternative Investments, and Custody, Investment Consulting and Investment Management Costs.
Compared to the universe of survey participants, the top performers allocated a higher percentage of their assets to Private Equity Direct (11% vs. 6%) and Real Estate (16% vs. 11%), while holding a smaller stake in International Equities (7% vs. 11%). They were also more likely than the overall sample to have first- or second-generation family leadership (73% vs. 67%).
“In analyzing the results of the study, one group significantly outperformed the rest, so we looked into what accounted for the difference. We found that they had specialists directing the investment strategy from the inside and often had a committee structure for setting policy. Their decisions led to excellent performance in 2014,” said Amy Hart Clyne, Executive Director of Family Office Exchange. “These sorts of insights into how and where family offices are investing the money, and what patterns surface in top performing offices, make the FOX Global Investment Survey a peer benchmark unlike any other.”
Highlights from the 2015 FOX Global Investment Survey are available to all FOX members. This report is available for members to download online on the FOX website. For more information about FOX membership, please visit: https://www.familyoffice.com/membership.
About Family Office Exchange
Family Office Exchange (FOX) is the premier global member network for enterprise families and their advisors who are pursuing best practices for managing their family enterprise and sustaining their family wealth. The community includes over 8,000 sophisticated family leaders and advisors from 460 organizations in 20 countries who utilize FOX’s resources each year for advice, networking, education, and comparative metrics.
FOX is headquartered in Chicago with offices in New York, San Diego and London. For more information about FOX, call 1.312.327.1200 (The Americas) or 44.(0)20.7520.9443 (Europe, Africa, Asia/Pacific) or visit www.familyoffice.com.