UBS has unveiled its Global Family Office Report 2025, providing a sweeping view into the investment priorities, strategic reallocations, and long-term planning approaches of ultra-wealthy families across the globe.
The study, based on input from 317 single family offices in over 30 countries, represents households with an average net worth of $2.7 billion, managing $1.1 billion on average in assets. The findings reveal how these families are navigating a period of heightened geopolitical risk, macroeconomic shifts, and a growing urgency around intergenerational planning.
Top Concern: Geopolitical Risk Outpaces Market Volatility
The dominant threat cited by respondents is the prospect of a global trade war, with 70% seeing it as the most significant short-term risk. This is closely followed by geopolitical conflict (52%), concerns that intensify when looking ahead five years—61% expect major geopolitical unrest to pose continued challenges, while 53% fear a looming global recession tied to trade and supply chain instability.
Debt levels are also under scrutiny: half of respondents flagged sovereign debt risk as a potential global crisis trigger.
Recalibrating Risk Amid Uncertainty
Despite a turbulent macro backdrop, 59% of family offices intend to maintain their current risk exposure. However, 38% acknowledge difficulty finding the right tools to mitigate that risk, while 29% say traditional safe-haven assets are no longer as reliable as they once were.
To counter these challenges, many are leaning into more active and diversified strategies:
- 40% are relying more on active management and manager selection
- 31% are increasing hedge fund allocations
- 27% are boosting investments in illiquid assets
- 26% favour high-quality, short-duration bonds
- 21% expect to raise their exposure to precious metals over the next five years
Strategic Shifts: Liquidity, Developed Markets, and Asset Class Realignment
Allocations are moving toward liquid and developed market assets. Exposure to developed market equities rose to 26% in 2024 and is projected to reach 29% in 2025. Over the next five years, 46% plan to moderately or significantly increase allocations to this asset class.
Meanwhile, enthusiasm for developed market fixed income remains modest (only 23% intend to increase exposure), and caution around emerging markets persists due to:
- Geopolitical instability (56%)
- Sovereign and regulatory risk (55% and 51%, respectively)
- Currency volatility and inflation (48%)
Regional Investment Trends
Family offices continue to favour North America (53%) and Western Europe (26%), which together make up nearly 80% of global portfolio allocations.
- U.S. family offices are heavily invested in alternatives (54%), primarily private equity (27%) and real estate (18%).
- Swiss family offices lean slightly more traditional, with 56% in equities and bonds, but maintain a strong alternative position as well.
- Other European offices strike a balance: 51% traditional, 49% alternatives, with allocations split between Western Europe and the U.S.
- Middle Eastern family offices are increasingly adopting a diversified approach, blending traditional and alternative assets equally and showing growing confidence in global private markets.
Succession: The Unfinished Agenda
Despite being amid the largest generational wealth transfer in history, only 53% of family offices have a formal succession plan. The rest cite reasons ranging from “still too early” (29%) to indecision or lack of time.
Among those with plans, tax efficiency (64%) is the top concern, followed by preparing heirs to manage wealth responsibly (43%). However, just 26% actively involve the next generation early in the planning process—highlighting a major opportunity to strengthen continuity.
What This Means for the Future
The report underlines how family offices are adapting to a world marked by greater complexity, where wealth preservation requires flexibility, long-term vision, and strategic agility. UBS leadership emphasises that while market turbulence and political uncertainty persist, these families continue to think generationally—with a steady hand and a focus on innovation, stewardship, and impact.
“This report is a reminder that family offices remain anchored in long-term thinking,” said Benjamin Cavalli, Head of Strategic Clients at UBS Global Wealth Management.
“At a time of rapid change, the survey offers a valuable glimpse into how these influential investors are managing risk, positioning capital, and preparing for the future,” added Yves-Alain Sommerhalder, Head of Global Wealth Management Solutions at UBS.
“In the Middle East, we see growing confidence in alternative investments and a more forward-looking investment posture overall,” noted Niels Zilkens, UBS’s Head of Wealth Management for the region.
