Core Insights - UBS released the "2025 Global Family Office Report," which summarizes insights from 317 single-family offices across over 30 markets globally [1] - The average net worth of the surveyed family offices is $2.7 billion, with an average asset under management of $1.1 billion [1] Investment Trends - The Asia-Pacific region (excluding Greater China) is where the majority of family offices (35%) plan to increase investments over the next five years [1] - 55% of Asia-Pacific family offices intend to increase investments in the region (excluding Greater China), while 30% plan to increase investments in Greater China [1] - In the next 12 months, 22% of Asia-Pacific family offices plan to increase exposure in India and Taiwan, and 39% plan to increase investments in mainland China [1] Asset Allocation Preferences - The preferred asset classes for Asia-Pacific family offices are developed market equities and bonds [1] - In 2024, the average allocation to developed market equities is projected to be 24%, while bonds are expected to be 20% [1] - 48% of Asia-Pacific family offices wish to increase investments in developed market equities over the next five years, and 40% aim to increase investments in emerging market equities [1]

Group 1 - The core finding of the UBS report indicates that over half of family offices in the Asia-Pacific region plan to increase investments in the region (excluding Greater China) over the next five years, with 30% planning to increase investments in Greater China [1] - In the next 12 months, 22% of family offices in the Asia-Pacific region intend to increase allocations to India and Taiwan, while 39% plan to increase allocations to China [1] - The preferred asset classes for family offices in the Asia-Pacific region are developed market equities and bonds, with an average allocation of 24% to developed market equities and 20% to bonds expected in 2024 [1] Group 2 - Nearly 60% of family offices in the Asia-Pacific region prioritize succession planning, with almost half (49%) planning to involve the next generation in management or executive roles, significantly higher than the global average of 31% [1] - When asked about threats to financial goals in the next 12 months, 70% of family offices highlighted trade wars, while 52% expressed concerns about significant geopolitical conflicts and higher inflation [2] - Looking ahead five years, 61% of respondents are worried about major geopolitical conflicts, and 53% are concerned about potential severe trade disputes leading to a global economic recession [2] Group 3 - Despite concerns, 59% of family offices plan to maintain the same level of portfolio risk in 2025 as in 2024, remaining committed to their investment objectives [2] - 40% of respondents believe that relying more on fund managers and/or active management is an effective way to enhance portfolio diversification, followed by 31% who prefer hedge funds [2] - UBS's report emphasizes that family offices are focusing on wealth protection for the next generation, aiming for long-term and stable investment strategies amid market volatility and recession fears [3]

Group 1 - The core viewpoint of the report is that family offices are increasingly favoring real estate investments due to its growth potential and wealth preservation capabilities [1][2] - Real estate constitutes a significant portion of family office investment portfolios, ranking just behind stocks and cash, with office buildings (20%), luxury residences (17%), industrial properties (14%), and hotels (12%) being the most allocated sectors [2][3] - Approximately 70% of real estate investments are domestic, with New Zealand (93%), Australia (90%), and the United States (86%) showing the highest domestic investment focus [2] Group 2 - Family offices view real estate as part of a broader investment strategy, balancing it with listed stocks, venture capital, or other private investments, and some see it as a strategic asset for core business operations [3] - Two-thirds of family offices manage private residential properties, primarily for family use and inheritance (44%), capital preservation (29%), and diversification (20%), with rental income being a lesser priority [5] - The most sought-after real estate sectors by family offices include living spaces (14%), industrial/logistics (13%), and luxury residences (12%) [7] Group 3 - Family offices express interest in expanding their real estate investments, particularly in living spaces, logistics, luxury residences, and hotels, but face challenges such as finding reliable partners (23%), tax regulations (20%), and asset competition (19%) [8] - In commercial real estate, opportunities are identified in gateway city office buildings, which are seen as volatility hedges, especially in light of increasing geopolitical risks [10][11] - Investors are also focusing on sectors with structural tailwinds, such as logistics and living spaces, while retail real estate in developed markets remains a point of interest [12][13] Group 4 - The report highlights a growing interest in ESG assets, with 90% of institutional investors setting social goals, and 73% focusing on workplace well-being [14][16] - The wine industry presents investment opportunities, particularly in vineyards, with prices in certain regions expected to decline significantly, while others remain stable [17][18] - The luxury goods market is experiencing mixed performance, with some sectors showing growth while others, like art and wine, are facing declines [22][24] Group 5 - The issue of inheritance is pressing, with 58% of family offices indicating that the next generation is involved in investment decisions, leading to changes in investment strategies [27][28] - Cultural and moral differences between generations affect investment strategies, with a notable shift towards sustainable investments among millennials compared to baby boomers [29]