Investment is the number one game in town for Hong Kong's family offices, ahead of family governance or adapting to a more digital world.

Investment is marginally more urgent as a priority for Hong Kong-based family offices than family governance, a survey of such organisations has found.

Based on 562 questionnaires conducted online in November 2021, the Family Office Association Hong Kong found that the top five priorities for family offices are investments (59 per cent), family governance (52 per cent), tax planning (42 per cent), succession planning (39 per cent), and digital transformation (38 per cent).

The ability to preserve, let alone grow, capital has been put under a harsher spotlight as global inflation rates rise and erode returns on some assets such as government bonds. 

The survey found that up to four in five respondents (79 per cent) from the family office industry allocated assets to ESG or impact investing in 2021. Of those who allocated, more than half (52 per cent) allocated 10 per cent or more of their portfolio to ESG/impact investing, with 27 per cent allocating 20 per cent or more. In 2022, 85 per cent of family office respondents expect to increase their allocations to ESG/impact investing, with almost two thirds (64 per cent) of respondents planning to increase allocations by more than 10 per cent, and more than one third (36 per cent) planning an increase of more than 20 per cent.

The FOAHK was founded in November 2020.