UBS has released its 2025 Global Family Office Report, drawing insights from 317 single family offices across more than 30 countries.
A looming trade war has emerged as the biggest short-term threat, cited by 70% of respondents. Geopolitical conflict (52%) and inflation followed closely behind. Looking further out, concerns about geopolitical instability grow even stronger—with 61% worried about major conflicts in the next five years and 53% bracing for a potential global recession. Half of all surveyed offices also flagged rising government debt as a key long-term risk.
Despite these worries, most family offices are holding their course: 59% plan to maintain their current level of portfolio risk in 2025. Yet managing that risk isn’t easy—38% said it’s challenging to find the right hedging strategy, and nearly a third pointed to the unpredictability of traditional “safe haven” assets.
In response, many are turning to diversification tools:
- 40% are focusing more on active management and manager selection
- 31% are increasing hedge fund allocations
- 27% are boosting exposure to illiquid assets
- 26% are using short-duration, high-quality fixed income
- 19% currently hold precious metals, with 21% planning to grow that allocation over the next five years
Victoria Hagmann, Head of Wealth Management for UBS in the UK, Jersey, and Guernsey, noted that global macro risks are weighing heavily on portfolios concentrated in Western Europe, the U.S., and Asia-Pacific. She emphasized the need for long-term thinking, especially with the generational wealth transfer underway.
“Each family office has its own path,” she said. “Partnering with an advisor who understands both the global landscape and local needs is essential for navigating this period of uncertainty.”
