UBS’ Global Family Office Report 2025 revealed that Asia-Pacific (excluding Greater China) is the top target region for family offices globally, with 35 per cent planning to ramp up investments there over the next five years.
Namely, 55 per cent of APAC family offices themselves are planning to increase investments in the APAC region, while 30 per cent are targeting Greater China.
Moreover, over the next 12 months, 22 per cent of APAC family offices plan to increase exposure to India and Taiwan, and 39 per cent to Mainland China.
UBS found that APAC family offices continue to favour developed market equities and bonds, with average allocations in 2024 sitting at 24 per cent and 20 per cent, respectively.
Looking ahead, 48 per cent plan to boost exposure to developed market equities, while 40 per cent expect to lift allocations to emerging market equities over the next five years.
Succession planning was also a prominent focus in the APAC region, UBS showed. Close to six in 10 APAC family offices will involve their next generation on their boards, while almost half – 49 per cent – will include them in management or executive roles, significantly higher than the global average of 31 per cent.
Regarding key risks in the year ahead, head of strategic clients at UBS Global Wealth Management, Benjamin Cavalli, said despite the survey being largely conducted in the first quarter, family offices were “already acutely aware of the challenges posed by a global trade war” and have identified it as 2025’s greatest risk.
“Yet in interviews conducted following the market turmoil that erupted in early April, they reiterated their diversified, all-weather strategic asset allocation,” Cavalli added.
Indeed, 70 per cent of family offices surveyed by UBS globally highlighted a trade war as the biggest risk to their financial objectives over the next 12 months. This was followed by major geopolitical conflict (52 per cent) and higher inflation.
Over the next five years, respondents said key concerns relate to major geopolitical conflict (61 per cent), while 53 per cent expressed anxiety about a global recession off the back of serious trade disruptions.
While 59 per cent of family offices plan to maintain the same level of portfolio risk in 2025, many face challenges in managing that risk, the report further revealed.
Thirty-eight per cent reported difficulty in finding effective risk-offsetting strategies and 29 per cent cite the unpredictability of safety assets. In response, 40 per cent are turning to manager selection or active management to improve diversification, followed by hedge funds (31 per cent).
Additionally, 27 per cent are increasing holdings in illiquid assets, 26 per cent are using high-quality short duration fixed income, and 19 per cent are investing in precious metals – a category that has seen the biggest growth in use.
