- 60 per cent of the world’s richest family offices are planning to change their investment strategy.
- Many wealthy investors are slowly reducing their dependence on the United States.
- This is due to concerns over a possible AI-driven stock market bubble, global debt, tariffs, a weakening dollar, and volatile economic policie
About 60 per cent of the world's richest family offices are planning to change their investment strategy over the next year, according to the UBS Global Family Office Report. This is nearly double the level seen over the past five years.
Many wealthy investors are slowly reducing their dependence on the United States, a trend often called "de-dollarisation". This is due to concerns over a possible AI-driven stock market bubble, global debt, tariffs, a weakening dollar, and volatile economic policies.
"Last year, all of the family offices were super concerned about global trade tariffs tensions. Today it's really shifted to geopolitical tensions around the world, global debt, and now interest rates. And not just the short-term implications, but the longer-term implications of these as well," said John Mathews, UBS head of private wealth management for the Americas.
Investors are worried about global conflicts, political instability, and rising tensions between countries. The second-biggest concern is the possibility of a global trade war. Investors also listed hyperinflation, cyberattacks, and rising debt crises as major risks that could hurt global markets and economies.
Many international family offices are now moving more money back into their home countries or into markets outside America. For example, Chinese family offices now keep around half of their investments in Western Europe. Similarly, family offices in Western Europe invest a large part of their wealth, about 41 per cent, within their own region.
More than one-fourth of family offices said they plan to reduce investments linked to the US dollar, the report states. Many investors are moving towards currencies such as the Swiss franc and the euro, which are seen as more stable alternatives.
About two-thirds of the investors surveyed said they believe confidence in the US dollar will weaken in the coming years, while nearly half admitted they currently have too much exposure to dollar-based assets.
However, wealthy investors still see the US as an important market, but they now want better geographical diversification to reduce risks. Many wealthy investors are looking to increase allocations in regions such as Latin America and Africa, according to the report.
The average share of their investments in US assets increased from 86 per cent to 88 per cent in one year. North America also remains the biggest centre for family wealth globally, which accounts for around 53 per cent of total family office assets worldwide.
