Core Insights - The UBS report indicates a structural shift in wealth creation and asset allocation among billionaires, with the number of billionaires projected to increase by 8.8% to 2,919 by 2025, and total wealth reaching a record $15.8 trillion, a 13% increase [1] - The Asia-Pacific region is expected to see a significant rebound, with the number of billionaires rising from 981 to 1,036, marking the highest growth globally [1] - A notable change in asset allocation among Chinese billionaires is observed, with alternative investments doubling from around 10% to over 20% of their portfolios [1][2] Wealth Distribution and Investment Trends - The report highlights a shift from concentrated wealth in publicly traded companies, particularly in technology and consumer sectors, to a more diversified asset allocation including alternative investments [2] - Infrastructure investments are becoming a key focus, with 35% of global billionaires indicating increased exposure, particularly among Chinese clients, as these assets provide stable cash flows of 5%-6% [2] - The trend of increasing gold investments is evident, with 32% of billionaires planning to increase their holdings in gold and precious metals, significantly higher than levels seen in 2022-2023 [2][3] Behavioral Changes and Wealth Management - The behavior of billionaires is influenced by national actions, with many closely monitoring central bank gold purchases, leading to a historical high in global official gold reserves [3] - Gold is increasingly viewed as a core defensive asset rather than a short-term speculative investment, integrated into family trusts and long-term wealth pools to hedge against currency devaluation and political uncertainty [3] - The profile of new Chinese billionaires is characterized by youth, entrepreneurial spirit, and a focus on wealth inheritance, with 60% planning to regularly update wills and trust structures [4] Future Wealth Transition - An estimated $135.3 billion wealth transfer is expected in mainland China over the next 15 years, prompting new billionaires to seek professional structures for investment, education, and philanthropy [5] - The shift from high-growth pursuits to building diversified portfolios signifies a transition from "wealth creators" to "wealth managers" among Chinese billionaires [5] - This transformation is closely linked to China's macroeconomic narrative, with billionaires' wealth rooted in industrial upgrades and technological innovation, reflecting the integration of the Chinese economy into the global landscape [5][6] Capital Flow and Global Investment Landscape - The changing investment strategies may reshape capital flows, directing more funds into alternative investments that support the real economy, innovative technologies, and global infrastructure [6] - As Chinese billionaires become active participants in shaping risk-return profiles through asset allocation, they are expected to play an increasingly critical role on the global wealth stage [6]

Group 1 - UBS's report indicates that family offices are gradually reducing cash holdings and increasing interest in gold, precious metals, and private debt [1][2] - 19% of global family offices plan to increase investments in the Greater China region, up 3 percentage points from 2024, with 30% in the Asia-Pacific region, reflecting a growing interest in this market [1] - The preference for the Greater China region is attributed to China's robust economic growth, expanding consumer market, and rapid development in technology innovation [1] Group 2 - Family offices are expected to reduce cash allocation to 6% by 2025, reflecting a shift towards assets with growth potential, particularly in developed market equities [2] - Interest in private debt has significantly increased among family offices, aiming to enhance overall portfolio returns through diversification [3] - Approximately one-third of family offices plan to increase allocations to gold and precious metals, indicating a rising demand for risk-hedging assets [3] Group 3 - The World Gold Council reported a 3% year-on-year increase in global gold demand, reaching 1249 tons in Q2 2025, driven by strong investment inflows amid geopolitical uncertainties [4] - Family offices are balancing investments between technology stocks and precious metals, indicating a strategy to capture growth opportunities while hedging against risks [4] - The long-term low-interest rate environment is pushing family offices to explore non-traditional investment avenues, including private equity and infrastructure [5] Group 4 - 45% of Middle Eastern family offices plan to increase investments in the Greater China region over the next five years, highlighting the region's growing appeal [7] - China and India are the most focused markets for family offices in the next 12 months, with 39% of Asia-Pacific family offices planning to increase investments in mainland China [7] - Approximately 78% of Asia-Pacific family offices prefer active investment strategies to achieve higher risk-adjusted returns [7] Group 5 - The development of family offices in China is driven by rapid economic growth and the need for wealth management tools for succession planning [8] - China's ongoing high-level opening-up policies and the dual drivers of consumption and technology are creating fertile investment opportunities [8] - The current market conditions present opportunities for investors to capitalize on valuation gaps and achieve cost-effective positioning [8]