UBS Global Family Office Report 2025: Key investment trends and strategic shifts among the world's wealthiest families
UBS has released its Global Family Office Report 2025, offering the most comprehensive analysis to date of the investment strategies, concerns, and evolving priorities of the world's wealthiest families.
Drawing insights from 317 single family offices across more than 30 markets, the report covers a broad cross-section of global capital and influence, with participating families averaging a net worth of $2.7 billion and managing an average of $1.1 billion in assets.
Conducted between January 22 and April 4, 2025, the report offers timely insights into how this elite group is navigating a period of significant economic and geopolitical uncertainty, while also adapting to long-term structural changes in global markets.
European family offices outside Switzerland balance traditional and alternative assets equally, with 51 percent in equities and bonds, and 49 percent in private equity and real estate
Read: Middle East families to see $1 trillion transfer of generational wealth by 2030: Report
Top concerns for 2025: Geopolitical risk dominate
The most urgent concern among family offices globally is the potential for a global trade war, cited by 70 percent of respondents as a primary threat to achieving their financial objectives over the next 12 months. This reflects heightened tensions among major economies and increased uncertainty surrounding international trade flows.
Closely following this, 52 percent of family offices identified major geopolitical conflict as a pressing concern. As the planning horizon extends to the next five years, this concern deepens: 61 percent foresee geopolitical conflict as a top risk, and 53 percent are worried about a global recession, likely triggered by serious trade disputes and supply chain disruptions.
Concerns over sovereign debt are also widespread, with 50 percent of respondents expressing alarm about a potential global debt crisis, highlighting widespread unease over high government borrowing and fiscal sustainability.
Risk appetite and the search for stability
Despite the turbulent outlook, 59 percent of family offices plan to maintain their current level of portfolio risk in 2025. However, nearly four in ten (38 percent) admit to facing challenges in identifying effective strategies to offset those risks. 29 percent also note that traditional 'safe haven' assets are no longer predictable, due to shifting correlations and macroeconomic instability.
As a response, a significant percentage of family offices are turning toward more dynamic strategies to maintain diversification:
40 percent are increasing reliance on manager selection and active management
31 percent are investing more in hedge funds
27 percent are boosting allocations to illiquid assets
26 percent are favoring high-quality, short-duration fixed income
19 percent are using precious metals, with 21 percent planning to increase their allocation over the next five years
Family offices are expected to play an even greater role in shaping the future of capital markets through strategic deployment of assets, stewardship, and innovation
Asset allocation shifts: Focus on liquidity and developed markets
In light of ongoing volatility and macroeconomic headwinds, family offices are realigning their strategic asset allocations, with a marked shift toward liquid markets and developed economies. Allocations to developed market equities increased to 26 percent in 2024, and among those planning changes, the average expected increase in 2025 is up to 29 percent.
Looking ahead five years, 46 percent anticipate significantly or moderately increasing their exposure to developed market equities. Conversely, only 23 percent plan to increase allocations to developed market fixed income.
Barriers to investing in emerging markets remain consistent:
56 percent cite geopolitical instability
55 percent highlight political uncertainty and sovereign risk
51 percent are concerned about legal uncertainty and regulatory frameworks
48 percent worry about currency devaluations and inflation
Regional preferences: North America and Western Europe lead
Geographically, family offices remain concentrated in developed Western markets. North America accounts for 53 percent of total allocations, followed by Western Europe at 26 percent. Together, these regions comprise nearly 80 percent of global portfolio weightings.
Succession planning: A work in progress
The world is in the midst of the largest intergenerational
wealth
transfer in history, yet only 53 percent of family offices have formal wealth succession plans in place. The remaining families cite various reasons for inaction:
29 percent believe there is still plenty of time to plan
21 percent have yet to decide how wealth will be divided
18 percent indicate a lack of time to properly address the issue
For those with plans in place, the biggest challenge is ensuring tax efficiency (64 percent), followed by preparing the next generation to responsibly manage wealth (43 percent). Notably, only 26 percent involve the next generation in succession planning discussions from the outset.
Geographically, family offices remain concentrated in developed Western markets
Regional investment strategies: A global snapshot
U.S.A.
U.S. family offices maintain a heavy tilt toward alternative assets (54 percent), with 27 percent in private equity and 18 percent in real estate. Traditional asset classes make up 46 percent, led by equities (32 percent).
Portfolios are predominantly U.S.-centric, with 86 percent of assets in North America.
Switzerland
Swiss portfolios are weighted toward traditional assets (56 percent), including 34 percent in equities and 13 percent in fixed income. Alternative assets represent 44 percent, with 16 percent in private equity and 12 percent in real estate. Regionally, Western Europe is the preferred destination (53 percent).
Europe (Excluding Switzerland)
European family offices outside Switzerland balance traditional and alternative assets equally, with 51 percent in equities and bonds, and 49 percent in private equity and real estate. Investment is concentrated in Western Europe (44 percent) and the U.S. (43 percent).
Middle East
Portfolios are split 50/50 between traditional and alternative asset classes, led by equities (27 percent) and private equity (25 percent). Regional allocation is tilted toward North America (55 percent), followed by Western Europe (21 percent).
The latest UBS Global Family Office Report shows that family offices in the Middle East are embracing a diversified, forward-looking investment approach
Balancing risk, opportunity, and legacy
The 2025 UBS Global Family Office Report reveals a complex landscape for the world's wealthiest investors. While geopolitical and economic uncertainty dominate near-term concerns, family offices remain resilient and adaptive, making calculated shifts in asset allocation to preserve
wealth
and seize new growth opportunities.
At the same time, many are grappling with the practicalities of intergenerational wealth transfer, emphasizing the need for long-term governance and proactive planning. As global conditions continue to evolve, family offices are expected to play an even greater role in shaping the future of capital markets through strategic deployment of assets, stewardship, and innovation.
'At a time of increased volatility, global recession fears and following a near unprecedented market selloff in early April, our latest report serves as a good reminder that family offices around the world are first and foremost pursuing a steady, long-term approach, as they focus on preserving wealth across the next generations,' Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management, says.
'While the global macroeconomic and political environment continues to be marked by rapid changes and a high degree of uncertainty, this survey offers a glimpse of what we can expect over the coming five years. And most importantly, it provides a snapshot into the thinking of family offices around the world, their objectives, preferences and concerns,' Yves-Alain Sommerhalder, head of Global Wealth Management Solutions at UBS Global Wealth Management, explains.
'The latest UBS Global Family Office Report shows that family offices in the Middle East are embracing a diversified, forward-looking investment approach. While maintaining a relatively cautious exposure to global public equities, which is the lowest amongst all regions globally, they have embraced the benefits of alternative investments,' says Niels Zilkens, head Wealth Management Middle East at UBS Global Wealth Management.
For more features,
click here
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
17 minutes ago
- The National
Has Europe given Iran an impossible nuclear ultimatum?
European negotiators have insisted Iran must accept that it cannot enrich uranium as part of its nuclear programme, so that peace can return to the Middle East, experts told The National. It is understood that Iran has been agreeable to limiting enrichment to 3.67 per cent, which is the standard level required for civilian nuclear reactors and was part of the previous nuclear agreement. But even this amount is unacceptable to the three European countries, Britain, France and Germany, currently holding talks with Iran in Geneva. 'The Europeans have now started insisting on zero as well, which the Iranians have said is going to be a non-starter,' said Darya Dolzikova, an expert on nuclear proliferation at the Rusi think tank. Iran has engaged in years of brinkmanship by defying international inspectors to enrich uranium to near weapons-grade level. Until the Israeli attacks of the last week, the threat of an assault on its installations seemed to have 'lacked some credibility for the Iranians'. In recent days the regime has appeared to accept the 3.67 per cent figure as a negotiating position, the same amount agreed under the 2015 JCPOA nuclear agreement. For any deal to last it will have to be signed off by US President Donald Trump who has also insisted on zero enrichment, said Richard Pater, director of Bicom, the Anglo-Israeli think tank. 'It all depends on whether 3.67 is acceptable to Trump or whether he's insisting on no enrichment whatsoever,' he said. 'But it's also this question of whether Trump will accept that [3.67 per cent] to get the big peace deal that he wants. Israel will then have no choice but to acquiesce to the American position.' Ms Dolzikova also argued that the Iranians would not agree to a deal that 'doesn't involve the United States as they are the critical players'. But Israel itself has insisted that it will not back down until Iran completely ends its nuclear programme and has made clear that any uranium enrichment on Iranian soil is something that it will not accept. Hasan Al Hasan, a nuclear expert at the International Institute for Strategic Studies, suggested that the 3.67 per cent figure was now redundant as 'there is no indication that Israel is in a mood to negotiate'. Having achieved near total freedom of action in the skies, Israel was likely to 'press ahead with its maximalist war objectives of eliminating Iran's nuclear and missile programmes and perhaps even regime change'. He added that Mr Trump's announcement that he would make no decision on joining the attacks - that would benefit from America's massive bunker-busting bombs - for the next two weeks was a signal for Israel to 'get the job done' in that period. But there is also a question whether within that fortnight window Israel, without US bombs, has the capability to destroy Iran's nuclear facilities. 'Israel is obviously probably more bullish right now and looking for the removal of the whole nuclear project in its entirety, but it remains to be seen whether that's in their gift,' said Ms Dolzikova. There is also a fear that if 3.67 per cent is agreed by Iran then it might in secret enrich uranium, and conduct a nuclear weaponisation programme viewing it as the only effective deterrent. 'If the regime survives this, then 3.67 per cent gives them another basis with which to start again,' said Mr Pater. 'Israel is under no illusion the Iranians given the chance, will do it all over again.'
Zawya
18 minutes ago
- Zawya
Saudi: New SAMA rules limit credit card fees: 3% cash withdrawal, 2% foreign purchases, free e-wallet top-ups
RIYADH — The Saudi Central Bank (SAMA) announced on Thursday updated rules for the issuance and operation of credit cards, aimed at lowering costs for customers and increasing levels of disclosure and transparency. The new regulations will take effect within 30 to 90 days. Among the key updates, credit card issuers must notify customers of any changes in fees via SMS, with customers allowed to terminate their agreement within 14 days of receiving the notice. E-wallet top-ups via credit cards are now free of charge. For cash withdrawals below SR2,500, fees are capped at 3% of the transaction amount. For withdrawals of SR2,500 or more, fees are limited to a maximum of SR75. International purchases will now carry a 2% fee of the transaction value. Customers are also permitted to deposit additional amounts above their credit limit and withdraw them at any time without incurring charges. SAMA worked with global payment companies to assess and reduce associated transaction costs, as part of its mission to enhance Saudi Arabia's digital payment ecosystem and provide a diverse array of payment options for customers and visitors. Transparency measures now require issuers to notify customers immediately of any financial transactions and to send account statements via SMS. Issuers must also provide tools for customers to estimate rewards and international charges before making a purchase. Regarding repayment, customers may pay off their full outstanding balance without incurring late fees, with a mandatory grace period of at least 25 days. The regulations also unify disclosure templates for all fees, charges, and benefits within credit card agreements, promoting greater clarity for consumers. Previously, cash withdrawals carried fees of SR75 for transactions up to SR5,000 and 3% of the transaction amount for amounts over SR5,000, with a maximum fee of SR300. The new cap of SR75 for larger transactions offers more favorable terms. International transactions are now subject to a clear 2% fee, and additional charges include SR25 for invalid transaction disputes and account statement requests. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
18 minutes ago
- Zawya
Mohammed bin Rashid announces changes to UAE government
Following consultations and approval of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, announced today changes to the UAE government. His Highness Sheikh Mohammed bin Rashid said, 'Following consultations with my brother, His Highness the President, and with his approval, we announce today changes to the UAE government as follows: establishment of a Ministry of Foreign Trade in the UAE government and appointment of Dr. Thani Al Zeyoudi as Minister of Foreign Trade, and renaming the Ministry of Economy to Ministry of Economy and Tourism led by Abdullah bin Touq Al Marri.' He added, 'We also announce that the National Artificial Intelligence System will be adopted as an advisory member in the Council of Ministers, the Ministerial Development Council, and all boards of federal entities and government companies starting from January 2026 to support decision-making in these councils, conduct real-time analyses of their decisions, provide technical advice, and enhance the efficiency of government policies adopted by these councils across all sectors.' His Highness Sheikh Mohammed bin Rashid said, "The world is undergoing a comprehensive transformation phase… scientifically... economically... and socially... our goal is to prepare today for the coming decades... our goal is to ensure continued prosperity and dignified life for future generations."
