A looming global trade war has emerged as the top concern for ultra-wealthy investors in 2025, prompting family offices to tilt toward more liquid assets, developed markets, and AI-powered strategies, according to UBS’s Global Family Office Report 2025.
Drawing insights from 317 single family offices across 30+ countries—with average assets of $1.1 billion—the report reveals a subtle but clear portfolio reshuffle. Allocations to developed market equities rose to 26% last year and are set to climb to 29% in 2025. Private debt is also gaining momentum, now making up 4% of allocations, double the previous year.
While private equity is seeing a slight pullback, many offices are sticking to their core strategies despite geopolitical turbulence and April’s historic US tariff hikes. Nearly 60% said they won’t alter their risk profiles, although a growing number are turning to hedge funds, short-duration bonds, and precious metals to hedge volatility.
Asia remains a focal point, with India and Mainland China seeing rising allocations—28% and 18% of respondents, respectively, plan to boost exposure. In contrast, South Africa and the broader African continent remain underrepresented, with under 1% of allocations.
Beyond asset shifts, family offices are increasingly leaning into thematic public equities—especially around AI, energy, and longevity. AI adoption is rising fast: within five years, most expect to use it for financial reporting, legal analysis, and portfolio insights.
Succession and governance are also taking centre stage. Yet, only 53% have formal succession plans in place. Where they do exist, tax strategy and next-gen readiness are top challenges—though only a quarter of offices actively involve heirs early on.
Cultural fit and trust continue to outweigh credentials in hiring decisions, with most prioritising values and alignment over traditional experience. Investment managers remain the most common first hire.
In UBS’s words: “Family offices aren’t pulling back—they’re evolving.” And as they navigate a world defined by disruption, liquidity, and intelligence are rising to the top of the agenda.
