Wealthy Families Shift Investment Strategies Amid Global Uncertainty
Investment Strategies Under Review
According to a recent report from UBS, increasing geopolitical tensions and worries about rising sovereign debt are prompting some of the wealthiest families globally to reevaluate their investment approaches. The Swiss financial institution disclosed that family offices managing substantial assets are progressively decreasing their reliance on the US dollar while seeking new investment opportunities in various regions. This information was shared in UBS’s Global Family Office Report 2026, which is based on a survey conducted from January to late March. The study included responses from 307 UBS clients worldwide, with the participating families boasting an average net worth of $2.7 billion.
UBS discovered that nearly two-thirds of the family offices surveyed anticipate a decline in confidence regarding the US dollar as the primary global reserve currency within the next year. This concern arose after the dollar experienced a drop in value before the survey concluded, leading many investors to reevaluate their exposure to US-related assets.
Maximilian Kunkel, a strategist at UBS, noted that almost half of the family offices surveyed recognized their excessive exposure to the US dollar across various asset classes. This realization has prompted many to diversify their investments and seek opportunities beyond traditional US-centric portfolios.
The report indicated that the survey was finalized prior to the dollar regaining strength against several international currencies, making the findings particularly significant in light of recent market fluctuations.
Emerging Markets Attracting Attention
Asia Pacific and Europe Gaining Investor Attention
As part of their diversification efforts, family offices are now looking to increase their investments in emerging market equities and infrastructure while scaling back on real estate holdings. The report also pointed out a growing interest in the Asia Pacific region and certain areas of Western Europe as alternative investment hubs. UBS executive Benjamin Cavalli remarked, "For the first time, we are observing family offices eager to invest in the Asia Pacific and, to some extent, in Western Europe." This trend is primarily seen among family offices outside the United States, although there are indications that a small portion of the de-dollarization trend is also emerging from US family offices.
This shift reflects a broader trend among affluent investors who are seeking geographic diversification in response to increasing economic and political uncertainties.
Geopolitical Concerns Drive Changes
Geopolitical Conflict Emerges As Top Concern
UBS reported that geopolitical conflicts have now become the foremost concern for family offices by a considerable margin. In light of this, many wealthy families are not only adjusting their investment allocations but are also implementing “multishoring” strategies. This approach involves distributing family office operations and structures across various jurisdictions to mitigate risks and enhance resilience during unstable periods. The report indicates that the combination of global conflict apprehensions, debt issues, and shifting currency expectations is driving a significant reevaluation of how ultra-wealthy investors aim to protect and grow their wealth.