UBS Global Family Office Report 2025: Navigating Uncertainty, Embracing Opportunity

United Arab Emirates, : UBS has released its Global Family Office Report 2025, highlighting that a potential global trade war has overtaken other concerns to become the top investment risk for the world’s wealthiest families. The report, based on insights from 317 single family offices managing an average of USD 1.1 billion each, offers a comprehensive look into the strategies and sentiments of this influential investor group amid an increasingly volatile global environment.

With 70% of respondents citing trade tensions as the most significant risk in the next 12 months, followed by geopolitical conflict (52%) and inflation (also 52%), family offices are revisiting their strategic allocations. UBS’s Benjamin Cavalli, Head of Strategic Clients, notes: “Even prior to the April market sell-off, family offices were already signaling caution, with many emphasizing a steady, long-term investment horizon.”

Defensive Playbooks: Diversification and Active Management

To mitigate volatility, many family offices are leaning into diversification strategies. Forty percent now see active management and manager selection as vital tools for portfolio risk management. Hedge funds (31%), illiquid assets (27%), and high-quality short duration fixed income (26%) are also gaining ground. The use of precious metals has surged, with 19% currently investing and 21% planning to increase exposure over the next five years.

Yves-Alain Sommerhalder, Head of GWM Solutions at UBS, said: “Despite a challenging macro environment, family offices remain focused on long-term wealth preservation, adapting by balancing risk with opportunities in liquid markets and alternative investments.”

Shifting Toward Developed Market Equities

While family offices are reducing exposure to private equity due to tighter capital conditions, they’re turning to developed market equities, now representing 26% of portfolios and projected to rise to 29% in 2025. Nearly half of respondents anticipate increasing exposure to these markets over the next five years, signaling confidence in their relative stability.

Spotlight on the Middle East

Middle East family offices are embracing a distinct approach, with portfolios evenly split between traditional and alternative assets. Their 14% allocation to real estate is second only to the U.S., and 25% is dedicated to private equity. The region leads in engaging with future-forward themes such as electrification, healthcare innovation, and generative AI, reflecting a bold appetite for transformative investments.

Niels Zilkens, Head of Wealth Management Middle East, noted: “Family offices in the region are strategically balancing caution with opportunity, making calculated allocations into private markets and sectors set to define the next decade.”

Global Trends: Region-by-Region Insights

• United States: 54% of portfolios are in alternatives, with 27% in private equity. Active management is prevalent in equity strategies.
• Latin America: More traditionally skewed, with 71% in equities and fixed income, but showing growing interest in North American and Western European markets.
• Switzerland: Western Europe dominates asset allocation (53%), while 68% of equity portfolios are actively managed.
• Asia-Pacific: Emerging markets remain of interest, particularly India and China, though concerns over political risk and regulation persist.

Succession and the Next Generation

The report also highlights an evolving approach to succession. Just over half (53%) of family offices have formal plans in place. The biggest challenges? Ensuring a tax-efficient wealth transfer (64%) and preparing the next generation (43%) – though only 26% currently involve them early in the process.

About the Report
UBS’s Global Family Office Report 2025 surveyed 317 family offices globally between 22 January and 4 April 2025. Families had an average net worth of USD 2.7 billion. The full report is available at: ubs.com/global/en/media/display-page-ndp/en-2025-global-family-office-report.html

About UBS
UBS is a leading global wealth manager and the universal bank of Switzerland, with over USD 6.2 trillion in invested assets following its acquisition of Credit Suisse. UBS operates in over 50 markets worldwide, delivering personalized financial solutions across wealth management, asset management, and investment banking.