UBS: Family offices cut US exposure as trade war fears mount
In brief
- UBS surveyed 317 single-family offices averaging $2.7 billion net worth from January to April 2025.
- Family offices actively cutting US exposure due to trade war anxieties and geopolitical turbulence.
- Trade war ranked as top 2025 investment concern ahead of inflation and recession.
Domestic concentration masks global retrenchment
US-based family offices allocated 86% of their portfolios to North America in 2025, up from 74% in 2020. Yet this apparent concentration masks a deeper pivot: global family offices are actively cutting their US exposure, seeking safer harbors elsewhere.
The reason is straightforward. Trade war anxieties, tariff uncertainty, and geopolitical turbulence are driving the retreat. The global trade war ranked as the top investment concern for 2025 among respondents — not inflation, not recession, but trade conflict itself.
Diversification into developed markets and Asia
Family offices surveyed are planning to increase their allocation to developed-market equities by approximately 29%. Some family offices are exploring diversification into the Asia-Pacific region, while others are increasing their European allocations.
Globally, the concentration remains striking. Roughly 80% of all family office assets stay locked in just two regions: North America and Western Europe. That said, the directional shift is real. Wealthy families that once treated the US market as a default allocation are now actively rebalancing.
No appetite for crypto
One notable absence from the UBS findings: digital assets. The UBS report shows an absence of interest in cryptocurrencies or digital assets among family office clients. Despite crypto's rise as an alternative asset class, ultra-high-net-worth families surveyed in this cohort remain indifferent to the space.
The shift in family office strategy reflects a broader recalibration of risk tolerance in an era of trade tensions and policy uncertainty.
