Family offices are known for taking the long view. Rather than reacting to short-term market swings, they typically build portfolios designed to preserve and grow wealth over generations. That makes any broad shift in strategy particularly significant.
According to the UBS Global Family Office Report 2026, which surveyed 307 family offices with an average net worth of US$2.7 billion, 60% intend to adjust their strategic asset allocation over the next year—up from just 35% in 2025 and the highest level ever recorded by the firm.
The changes reflect more than routine portfolio rebalancing. Instead, they signal a fundamental response to an increasingly uncertain global environment.
Geopolitics is driving investment decisions
Across multiple industry studies, geopolitical instability has emerged as the dominant influence on family office investment strategy.
The UBS report identifies geopolitical conflict as the biggest concern over both the short and long term. Over a five-year horizon, worries about sovereign debt crises and global recessions also rise sharply.
Similar findings appear in BlackRock’s 2025 Global Family Office Survey, where 84% of respondents said geopolitical developments now play a critical role in capital allocation decisions. It also marked the first time since the survey began that overall sentiment turned negative.
Meanwhile, the RBC and Campden Wealth 2025 North American Family Office Report found that preserving liquidity and reducing portfolio risk have become top priorities, with many respondents expecting cash to outperform other assets in the near term.
Where family offices are investing
Despite the cautious outlook, family offices continue to commit significant capital to private markets.
Alternative investments now account for roughly 42% of portfolios, with private credit and infrastructure attracting the strongest interest. Stable income streams and inflation protection continue to make infrastructure credit particularly appealing.
Infrastructure is gaining momentum more broadly, while exposure to real estate is being reduced by many investors. Gold is also receiving renewed attention as a defensive asset that can help hedge against geopolitical uncertainty.
Artificial intelligence remains one of the most popular long-term investment themes. Family offices continue backing opportunities across semiconductors, software, data centres, electrification and AI-enabled healthcare. Although valuations in some areas appear stretched, most investors plan to maintain or increase their exposure.
Reassessing the US dollar
Another notable trend is a gradual shift away from heavy reliance on the US dollar.
Nearly two-thirds of respondents believe confidence in the dollar’s status as the world’s reserve currency could weaken over the coming year, while almost half feel they are overexposed to dollar-denominated assets. Many are either reducing or considering reducing that exposure, favouring currencies such as the euro and Swiss franc.
That does not represent a retreat from US investments. North America still makes up the majority of family office allocations, particularly among US-based families. Instead, investors are gradually diversifying currency exposure and expanding allocations to regions including Asia-Pacific, Greater China and Western Europe.
Governance still lags behind
While investment strategies are evolving rapidly, succession planning remains an area where many family offices are underprepared.
Only around one-third have formal succession plans for the family office itself, and fewer than three in ten have structured programmes to prepare the next generation for leadership.
Although more families are beginning to address succession, preparation continues to lag behind expectations. With an estimated US$83 trillion expected to transfer between generations over the next two decades, strengthening governance is becoming increasingly urgent.
Opportunities for investment managers
The latest research also points to growing demand for specialist expertise.
Many family offices acknowledge gaps in areas such as private market investing, deal sourcing, portfolio analytics and reporting. As a result, more are turning to specialist investment managers, co-investment opportunities and outsourced chief investment officers to strengthen their capabilities.
A different approach from endowments
University endowments, another major source of long-term capital, are taking a different path.
The 2025 NACUBO-Commonfund study found US endowments remain heavily invested in equities and private equity, particularly among the largest institutions. By contrast, family offices are broadening diversification through private credit, infrastructure, real assets and currency management.
Both invest with multi-generational time horizons, but they are responding to today’s market environment in different ways.
Overall, family offices are adapting to a world defined by greater geopolitical uncertainty, shifting currency dynamics and an approaching wave of generational wealth transfers. Rather than abandoning their long-term philosophy, they are strengthening portfolio resilience through broader diversification while maintaining a disciplined strategic focus.
