UBS has published its annual Global Family Office Report 2025, with insights from 317 single family offices across more than 30 markets around the globe.
When asked about threats to their financial objectives over the next 12 months, more than two thirds (70%) of family offices highlighted a trade war. The second biggest concern for more than half (52%), was major geopolitical conflict, followed by higher inflation. Looking five years ahead, those worried about a major geopolitical conflict increased to 61% and 53% were anxious about a global recession likely off the back of potentially serious trade disputes. Alert to the dangers of government borrowing, 50% of family offices were concerned about a debt crisis, according to the survey.
Despite concerns, at the time the survey was conducted, 59% of family offices planned to take the same amount of portfolio risk in 2025 as they did in 2024, staying true to their investment objectives. However, 38% highlighted the difficulty in finding the right risk offsetting strategy when managing portfolio risks, while 29% pointed out the unpredictability of safety assets due to factors such as unstable correlations. Off the back of this, 40% see relying more on manager selection and/or active management as an effective way to enhance portfolio diversification, followed by hedge funds (31%). Almost as many are increasing illiquid asset holdings (27%), and more than a quarter (26%) are using high-quality, short duration fixed income. Precious metals, used by almost a fifth (19%) globally, have seen their use grow most of all compared with the previous year, with 21% anticipating a significant or moderate increase in their allocation over the next five years.
Victoria Hagmann (pictured), head of wealth management for UK, Jersey, and Guernsey at UBS Global Wealth Management, commented: “The investment impacts of global trade, geopolitical circumstances, and inflation are major concerns resonating with family offices across Europe – where portfolios are weighted towards Western Europe, US, and Asia-Pacific and many investors remain cautious about emerging markets.
“Thriving in this environment requires a long-term mindset and a steady hand, rather than reactive moves in response to short-term market volatility. Each family office faces its own unique set of challenges, and effective wealth management should reflect that with a personalised approach. A big part of this is understanding how decisions made today could shape the financial future of the next generation in the context of the great wealth transfer currently underway.
“Engaging an objective pair of eyes can make all the difference, and our client advisors on the ground across Edinburgh, Jersey, London, Manchester, and Newcastle will be translating our latest global family office insights into meaningful, localised guidance tailored to their clients’ bespoke needs.”
