Family offices’ inflation concern surges as trade fears drop to 18%

Inflation has quietly become the biggest fear haunting the world’s wealthiest families, overtaking the trade war anxieties that dominated boardroom conversations just twelve months ago. According to Citi Wealth’s eighth annual Global Family Office Report, this rising inflation concern among family offices now sits well ahead of every other economic worry on the list, from interest rates to financial-system stability. The findings, based on a survey of more than 350 single-family offices across over 40 countries conducted in June and July 2026 and reported by Bloomberg, paint a picture of ultra-wealthy investors bracing for a very different kind of threat than the one they feared a year ago.

Key takeaways

• Nearly two-thirds of ultra-wealthy family offices now name inflation as their top concern, up sharply from a year ago.
• Trade disputes and tariffs, last year’s leading worry at 60%, fell to just 18% this year.
• Rising interest rates (44%) and global financial system stability (38%) round out the top three concerns.
• About 90% of surveyed family offices reported positive year-to-date portfolio performance as of September 2026.
• 79% of family offices are making direct investments, bypassing traditional fund structures entirely.

Inflation Surpasses Trade Disputes as Top Concern for Family Offices

Nearly two-thirds of respondents flagged inflation as their primary concern in Citi Wealth‘s latest survey, according to the report cited by Bloomberg. That marks a dramatic reordering of priorities compared with last year, when trade disputes and tariffs led the list at 60% of responses. This year, that figure collapsed to just 18%, a drop of more than 40 percentage points in a single survey cycle.

Shift in Risk Priorities From 2025 to 2026

The scale of the swing is what makes this year’s data notable. Trade policy fears that once consumed nearly every conversation among family office managers have largely faded from the radar, replaced almost entirely by concerns over the purchasing power of accumulated wealth. It suggests that for the ultra-wealthy, as for ordinary households, the persistent creep of prices has become harder to ignore than geopolitical headlines about tariffs.

Survey Demographics and Scope

The report, published by Citigroup, surveyed families with an average net worth of approximately $2.1 billion, giving a clear window into how the very top tier of private wealth is reading the macro environment. Bloomberg noted the survey ran during June and July 2026 and covered single-family offices spread across more than 40 countries, offering one of the broadest snapshots available of how the wealthiest households are positioning themselves this year.

Other Key Macroeconomic Concerns Among Ultra-Wealthy Family Offices

Beyond inflation, rising interest rates and doubts about broader financial stability round out the list of worries keeping family office managers up at night. Together with inflation, these three concerns form the backbone of how the ultra-wealthy are reading today’s economic backdrop.

Rising Interest Rates as Second Biggest Worry

Rising interest rates came in as the second-biggest worry, cited by 44% of respondents. For family offices managing sprawling, multi-asset portfolios, higher borrowing costs ripple through everything from leveraged real estate holdings to private credit positions, making this a persistent secondary pressure point even as inflation takes top billing.

Stability of the Global Financial System

Stability of the global financial system ranked third at 38%. That figure signals that a meaningful share of the ultra-wealthy are still wary of systemic shocks, even as their most urgent anxiety has shifted toward the slower, grinding erosion that inflation causes to real returns over time.

Strong Portfolio Performance Amid Shifting Investment Strategies

Despite the rising worry over inflation, most family offices are not struggling financially this year. About 90% of surveyed offices reported positive year-to-date portfolio performance as of September 2026, according to the Citi Wealth report, showing that concern and performance can move in opposite directions at the same time.

Positive Year-to-Date Returns in 2026

Roughly 41% of family offices said they are targeting annual returns in the 7-10% range, a goal that appears well within reach given how many offices are already reporting gains for the year. This suggests that even as inflation dominates the worry list, portfolio construction has adapted quickly enough to keep returns on track for a large share of respondents.

Leadership of Asia-Pacific Family Offices in High Returns

Asia-Pacific family offices have been especially aggressive performers this year. A full 22% of APAC offices achieved year-to-date returns above 15%, leading all regions surveyed. That regional standout suggests appetite for risk-taking, or simply more favorable market conditions, has been stronger in Asia-Pacific than elsewhere so far in 2026.

Increasing Role of Direct Investments

For the ultra-wealthy, direct investments continue to serve as a fundamental strategy. Among family offices, seventy-nine percent said they engage in direct investments, channeling capital directly into companies and deals instead of relying on third-party managers or traditional fund structures. This growing preference for direct deals reflects a broader trend of family offices wanting more control over where their capital lands and how quickly it can move.

Strategic Repositioning to Counter Inflation Risks and Emphasize Succession

The Citi Wealth report indicates that ultra-wealthy family offices are actively repositioning portfolios around inflation rather than simply worrying about it in the abstract. The trend points toward diversified investment strategies that lean on inflation-sensitive assets and short-duration income instruments, tools designed to hold their value, or even gain, as prices climb.

Succession planning has also taken on renewed importance alongside these portfolio shifts. That pairing is telling: as families adjust how they invest to guard against inflation, they are simultaneously rethinking how wealth gets passed down, treating both as parts of the same long-term preservation strategy rather than separate concerns.

Why this matters goes beyond the balance sheets of a few hundred wealthy households. When inflation becomes the dominant fear for investors managing an average of $2.1 billion each, it signals that price pressures are seen as a structural, not temporary, feature of the current economic landscape. Their pivot toward inflation-sensitive assets and direct deals could also ripple outward, shaping how capital flows into private companies and alternative assets more broadly in the months ahead.

FAQ

What is currently the biggest concern for ultra-wealthy family offices?

Nearly two-thirds of ultra-wealthy family offices named inflation as their top concern, surpassing trade disputes.

How have concerns about trade disputes changed recently among family offices?

Concern about trade disputes dropped sharply from 60% last year to 18% this year.

How are family offices performing in their investment portfolios in 2026?

About 90% of family offices reported positive year-to-date portfolio performance as of September 2026.

What investment strategies are family offices adopting to address inflation?

Family offices are repositioning portfolios toward inflation-sensitive assets and emphasizing succession planning.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.