Citibank Private Bank released the Family Office Investment Report for the second quarter of 2024, indicating that various risky assets, particularly stocks, rose in the second quarter of 2024. Prior to this, Citibank's family office clients had significantly increased their holdings of stocks in the first three months of this year. In contrast, their views on fixed income assets were more mixed, and fixed income assets also performed slightly worse. In the second quarter, family office clients continued to increase their holdings of stocks and hedge funds, while their interest in fixed income assets also slightly rebounded. Citibank stated that despite the US delaying interest rate cuts again and geopolitical tensions becoming more uncertain, many family offices increased their allocations to fixed income and stocks in the second quarter of 2024, while further reducing their cash holdings. Regarding stocks, family office preferences shifted towards large-cap stocks in mature markets. Allocations to small and mid-cap stocks in all regions (excluding North America) were reduced, and investments in emerging market stocks either decreased or remained flat. Among the sub-asset classes of fixed income, fund flows in all four regions showed mixed strength, with no clear preference. Allocations to hedge funds increased, while trading in commodities was lackluster. For the Asia-Pacific region, Citibank stated that, like the previous quarter, family offices in the region increased their allocations to fixed income and stocks in equal weight terms, a trend particularly notable among family offices with larger investment portfolios at Citibank Private Bank. Fixed income assets once again saw net inflows in US dollars, almost double the rate of the first quarter of 2024. Investment grade bonds in mature markets and sovereign bonds jointly drove the largest net inflows in the fixed income sector in US dollars. Most bond buying activity was focused on medium-term US Treasuries and high-quality financial credit products. Citibank pointed out that diversified fixed income assets also saw net inflows in US dollars, a magnitude comparable to investment grade bonds in mature markets and sovereign bonds, mainly due to a few large buy orders recorded by global income funds. Even without considering these transactions, the overall net inflows in US dollars remained positive. In terms of capital weighting, Citibank stated that allocations to high yield corporate bonds in mature markets rose again. Bond buying activities were widespread in the financial, energy, and real estate sectors, while bond selling activities mainly involved perpetual bonds in certain financial institutions. Emerging market bonds saw net outflows in US dollars mostly due to bond maturities. Excluding maturing bonds, the net inflow in US dollars during the quarter remained balanced. Buying and selling activities were widely dispersed across different industries. The report also stated that stocks saw net inflows in US dollars for the third consecutive quarter, with family offices increasing their allocations to stocks regardless of whether calculated in equal weight or capital weighting terms. Large-cap stocks in mature markets were the main driving force behind the net inflows in US dollars, at a rate approximately double that of the previous quarter. Trading activities in individual stocks in the US technology sector and exchange-traded funds (ETFs) were the main factors driving net inflows in US dollars during the quarter. While buying activity was mainly focused on the US, several Japanese stocks were also favored. Small and mid-cap stocks in mature markets saw net outflows in US dollars again during the quarter, with trading activities dispersed across various industries and regions. Similar to the first quarter, emerging market stocks saw net outflows in US dollars in the second quarter of 2024. Buying activities were spread across various industries, while selling activities were concentrated in the information technology, non-essential consumer goods, and communication services sectors. The bank continued to see moderate buying interest in some India-focused funds. On average, in equal weight benchmark terms, family offices in the Asia-Pacific region had higher allocations to stocks than in other regions. As for alternative assets and commodities, Citibank stated that allocations to hedge funds increased overall when calculated in equal weight terms. Some multi-strategy and multi-manager hedge fund strategies attracted moderate buying interest. Trading in commodities was also weak, with allocations roughly staying at 0.4% when calculated in equal weight terms.