Citi Private Bank released the Family Office Investment Report for the first quarter of 2024. The report indicates that family offices continued to invest their liquidity in the market during the quarter, with a focus on large-cap stocks in mature markets. However, family offices also showed interest in small-cap stocks in mature markets and still see value in investment-grade fixed income assets. The report states that family office clients in the Asia-Pacific region hold a lower proportion of cash compared to clients in other regions and allocate more assets to the stock market, resulting in a second consecutive quarter of positive net inflows into equities. Large-cap stocks in mature markets were the main source of net inflows into the stock market, with selling activities mainly focused on US software and internet stocks, and buying activities more diversified. Conversely, there was a negative net inflow of funds into emerging market stocks, reversing the trend from the previous quarter. The report also highlights that family office clients in the Asia-Pacific region bought semiconductor stocks and non-US market stocks such as Japanese stocks. They showed significant interest in active investments focused on specific areas in Japan, exchange-traded funds, and investments in healthcare, biotechnology, and technology. In the fixed income asset class, there have been five consecutive quarters of net inflows, with the largest net inflows recorded in investment-grade bonds in mature markets and sovereign bonds in mature markets. Most buying activities focused on US Treasury bonds and high-quality financial institution bonds, with longer-dated bonds also favored by buyers. High-yield corporate bonds in mature markets also saw net inflows, with buying activities spanning across different industries, while selling activities mainly involved preferred securities of individual financial institutions. Hedge fund allocations increased overall when calculated on an equal-weighted basis. Commodity trading performance moderated, with allocations decreasing to 0.5% when calculated on an equal-weighted basis, partly due to related changes in other asset classes.