MFs, AIFs to gain higher weight in family office portfolios: Report

Exposure to fixed income, real estate likely could decline, says Sundaram Alternates report

Family office portfolios are expected to increase their allocation towards products like alternative investment funds (AIFs), mutual funds (MFs), and portfolio management services (PMS) in the coming years, while trimming their fixed income and real estate exposure, Sundaram Alternates said in a report on Wednesday.

"Allocations to MFs, PMS, AIFs, and gold are anticipated to see modest increases, while fixed income and physical real estate are likely to experience a decrease. The allocation to startups is expected to remain stable as family offices continue to explore and capitalise on opportunities in this sector," it said.

A survey of family offices by the asset manager shows that mutual funds (MFs) are the mainstay in family office portfolios, with 20 per cent of the respondents having over 50 per cent of the corpus invested in MF schemes. Another 73 per cent of the respondents had allocated anywhere between 1-50 per cent of the corpus to MFs. According to the survey, most family offices are invested in AIFs as well, but the exposure is comparatively lower.

This allocation, Sundaram Alternates said, is expected to go up in the coming years as "AIFs are gaining traction among family offices as a preferred tool for accessing private markets and startups".

NSE arm gets ERP licence

NSEs arm NSE Sustainability Ratings & Analytics has re­gis­tered with the Sebi to act as an ESG Rating Prov­ider, said an exchange official. Nearly half a dozen other firms are in the process of getting regis­tered with the Sebi. Crisil’s ESG arm and Institutional Investor Advisory Services’ subsidiary IiAS Sustainability have already the ERP licence.

- BS REPORTER