Core Insights - UBS conducted a global family office survey with 317 participants, revealing a historical high in wealth scale and a trend of increasing total net worth among family offices since 2020 [1] Group 1: Asset Allocation Trends - Family offices are reducing cash allocations, with a planned cash holding of only 6% by 2025, shifting towards global equities due to low cash yields [2] - There is a significant increase in private debt investments among family offices to enhance returns and diversify portfolios, with 48% of Asia-Pacific family offices planning to increase developed market equities [3] - Approximately one-third of family offices plan to increase allocations to gold and precious metals, particularly in the Asia-Pacific and Middle East regions, where the interest is notably high [4] Group 2: Interest in Chinese Assets - Global family offices show increasing interest in Chinese assets, with 19% planning to allocate more to this region, a 3 percentage point increase from 2024 [5] - In the Asia-Pacific region, 30% of family offices intend to increase their allocation to China, up 6 percentage points year-on-year, with the Middle East showing the highest interest at 45% [5][6] - China and India are identified as the most favored emerging market destinations for investment over the next 12 months, with 39% of Asia-Pacific family offices planning to increase their holdings in mainland China [7] Group 3: Long-term Investment Focus - Family offices prefer active management strategies, with 78% in the Asia-Pacific region employing such approaches, focusing on sectors like pharmaceuticals, healthcare, electrification, and artificial intelligence [8] - There is a strong emphasis on sustainable and impact investing, with 44% of global family offices supporting education through charitable means, and 61% in the Asia-Pacific investing in healthcare technology and related projects [8] Group 4: Risk Management Strategies - To mitigate potential risks, family offices adopt diversified investment strategies, with 40% employing active management and professional investment managers [9] - Nearly one-third of family offices utilize hedge funds to manage market volatility, while others increase allocations to illiquid assets, high-quality fixed income, and precious metals to enhance portfolio resilience [9]

Key Insights - UBS released the "2025 Global Family Office Report," summarizing insights from 317 single-family offices across over 30 markets, with an average net worth of $2.7 billion and average assets under management of $1.1 billion [1][2] Group 1: Strategic Asset Allocation - Family offices are focusing on structural growth, yield enhancement, and diversification, reducing cash holdings while increasing investments in developed market equities to capture long-term growth opportunities in AI and healthcare [3] - The average allocation of family offices to North America and Western Europe is nearly 80%, with U.S. family offices showing a historical peak in domestic allocation, indicating a significant withdrawal from international markets [4][20] - Family offices prioritize healthcare, electrification, and artificial intelligence in emerging technologies, with a high sensitivity to opportunities in both public and private markets [5] Group 2: Investment Risks and Management - The global trade war is identified as the largest investment risk for 2025, with family offices concerned about geopolitical conflicts, economic recession, and debt crises [6] - Family offices emphasize internal management functions, focusing on expertise, privacy, and control rather than cost considerations [7] Group 3: Succession Planning and Recruitment - Just over half of family offices have established wealth succession plans, but many do not prioritize this due to a perception of having ample time [8] - When hiring new employees, family offices prioritize trust and personality traits over educational background or qualifications [9] Group 4: Asset Allocation Trends - Family offices are increasing allocations to public equities and private debt, with 35% planning to adjust their strategic asset allocation in 2025, the second-highest rate recorded in six years [10] - The allocation to developed market equities is set to rise from 24% in 2023 to an average of 29% in 2025, while private debt allocation is expected to double from 2% to 5% [12][13] - Real estate allocations are increasing, with U.S. family offices raising their allocation from 10% to 18%, while Latin American and Southeast Asian family offices are reducing their allocations [15] Group 5: Emerging Markets and Geopolitical Concerns - Family offices are cautious about emerging markets, with allocations to emerging market equities at 4% and bonds at 3%, reflecting a trend of increased caution from U.S. and European family offices [18] - Geopolitical concerns are the primary barriers to investing in emerging markets, with 56% citing these as a significant risk [19] Group 6: Future Outlook - Family offices expect to increase allocations to developed market equities and private markets, with 46% planning to significantly or moderately increase their exposure to developed market stocks [23] - Long-term, private market allocations are expected to grow, with over one-third of family offices planning to increase private equity investments despite short-term challenges [24] - Attitudes towards real estate investments are mixed, with 29% of family offices anticipating growth while 19% expect declines [26]