Family offices prioritising resilience as geopolitical risk reshapes portfolios

Family offices are prioritising resilience, diversification, and long-term opportunities as sustained geopolitical risk and structural uncertainty reshape global portfolios, a report from UBS has stated.

Its Global Family Office Report 2026 found that geopolitical conflict had emerged as the greatest risk across short- and long-term horizons, while global debt level and recession concerns were rising.

In response to these risks, family offices were taking a ‘measured, medium-term’ approach through diversification across asset classes, currencies, and regions, rather than making abrupt allocation shifts.

Nearly two thirds (60 per cent) of family offices planned changes to their strategic asset allocations over the next 12 months, the highest level ever recorded by UBS.

Although developed markets remained the foundation of portfolios, allocations were gradually moving towards emerging market equities and alternatives.

The report also highlighted a shift in currency positions, with 65 per cent of family offices expecting confidence in the US dollar’s reserve status to weaken, leading to many reassessing exposure to US dollar-denominated assets.

North America continued to account for the largest share of allocations, but family offices were looking to reduce concentration risk by expanding exposure to Asia Pacific, Greater China, and Western Europe.

Artificial intelligence (AI) remained the leading investment theme, with 65 per cent of family offices already invested across the value chain.

Family offices planned to maintain or increase their exposure to AI, despite valuation concerns, balancing opportunity with resilience.

“This report shows that family offices continue to adjust portfolios in measured ways – diversifying across assets, currencies and regions, while maintaining exposure to long-term themes such as artificial intelligence with greater selectivity,” said UBS Global Wealth Management head of strategic clients & global connectivity, Benjamin Cavalli.

“Many are considering a reduction in exposure to the US dollar or are planning to diversify regionally, but North American assets clearly continue to represent the greatest share of allocations.”

Although family offices were continuing to professionalise their investment operations, UBS highlighted persistent gaps in governance frameworks, succession planning, and next-generation engagement.

Many family offices had adopted institutional-grade practices, with 68 per cent having formal financial performance measurement processes, while 60 per cent operated with investment committees and more than half used structured budgeting frameworks.

However, fewer than half had implemented formal governance frameworks with board-level oversight, 35 per cent had a defined succession plan, and 27 per cent had a structured process in place to educate and prepare their heirs.

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