While family offices in North America are feeling downbeat about the prospects of developed market equities in the coming years, they are nonetheless looking to increase allocations, according to a survey by RBC Wealth Management, citing the “Fear of Missing Out”.
In 2025, family offices in North America delivered a median return of 13%, according to a survey by RBC Wealth Management, which compares to 11% in 2024 and more than double of what was anticipated.
Not a single asset class registered a negative median return with gold and other precious metals leading outperformance compared with expectations, as agreed by 26% of respondents.
On a two to five-year horizon, North American family offices are most optimistic about direct investments in private equity and real estate with 40% and 41%, respectively, expecting the two asset classes to deliver even better performance. The stated intentions correspond to the positive outlook with 41% and 42% of respondents seeking to increase allocations to direct private equity and real estate, respectively.
This follows 2025 median returns of 15% from direct private equity and 8% from real estate.
Developed market equities paradox
Interestingly, optimism in developed market equities is muted but plans are contradictory.
Although the majority of respondents (51%) believe that the asset class will generate worse returns in the coming two to five years, 37% are looking to increase allocations, with 53% keeping constant and just 10% seeking reduction. This follows a 2024-2026 period that saw North American family offices already increase their average allocations by 7 percentage points to 30% – the most of any asset classes.
“A key takeaway from this outlook is that family offices are not immune to the impacts of behavioral finance,” the report said. “While equities have become more expensive, we are seeing increased enthusiasm and the expectation for continued momentum at a time when we might expect to see more skepticism. Even patient capital can be caught up with the Fear of Missing Out (FOMO) trade.”
The North America Family Office Report 2026 is based on 155 responses with the average family net worth of USD 2.25 billion and USD 330 billion of collectively disclosed wealth.
