More than eight in 10 (81.6 per cent) family offices expect the investment risk appetite of their clients to increase over the next 12 months, research has shown.

The study, conducted by Ocorian, found that 69.3 per cent of family office professionals believed their clients’ risk appetite would increase slightly, while 12.3 per cent predicted it to rise dramatically.

Only 0.6 per cent predicted their clients’ risk appetite would fall and 17.5 per cent said it would stay the same.

Ocorian’s research found that greater regulation around risker or more specialist asset classes was the most common reason for respondents’ expectations of increased risk appetite.

Nearly two thirds (61.5 per cent) cited increased regulation, while 54.8 per cent said there was a feeling that inflation would peak soon or had peaked, and 46.8 per cent cited greater transparency around riskier asset classes.

Almost half (44 per cent) stated there was a feeling that markets had bottomed out or are ready to recover, and 28.6 per cent felt many family offices have had too much of their wealth in cash for too long.

Family office professionals noted the regulatory demands facing family offices, with the majority feeling they were well advised and equipped to meet these demands.

Nearly two thirds (64.7 per cent) said they were in a quite strong position to meet regulatory demand, while 18.1 per cent felt they were in a very strong position to meet them.

Just 2.9 per cent believed they were in need of professional assistance to meet regulations and 14.2 per cent felt their ability to meet demands was average.

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