Inside the UBS 2025 family office report: What the graphs are telling us

UBS recently dropped its 2025 Global Family Office Report. Most of the survey responses were collected before April’s sharp market sell-off, but follow-up interviews conducted after the turmoil show that despite everything, most family offices aren’t making drastic changes.

Despite a rocky start to the year with volatile markets and intensifying geopolitical risks, the message from 317 of the world’s most influential family offices is clear: they’re not panicking.

As one put it: “We’re sitting tight and waiting for the dust to settle.”

No radical shifts. No knee-jerk reactions. Just a quiet confidence in long-term strategy.

Still, the report is full of interesting findings on everything from asset allocation, investment themes, family office risks, and succession planning.

In this article, I’ll walk you through the most insightful graphs from the UBS report to show you where the world’s family offices are heading.

Asset allocation: Staying the course, tweaking the map

The average portfolio remains balanced between traditional and alternative asset classes. Traditional holdings make up 56% of allocations, with equities accounting for over half of that. Alternatives make up the remaining 44%, led by private equity, direct investments, and real estate.

In truth, not much has changed at the strategic level. The allocation to equities is up slightly compared to last year from 28% to 30%, but that’s probably more a reflection of market performance than a strategic shift.

Family offices are doubling down on private debt, though. Interest rate hikes have made the asset class more attractive, especially for those hunting for yield in a higher-for-longer environment.

As one family office said: “We’re sticking to our long-term strategic asset allocation while making tactical changes.” And that feels like the perfect summary: committed to the map, but adjusting the route.

Home bias is strong – and not just in the U.S.

Yes, U.S. family offices lead the pack with an eye-popping 86% of assets staying on home soil. A steep rise from 74% just five years ago and a record-high home bias. But look closer, and the home bias trend isn’t exclusive to the U.S.

European family offices, for example, allocate 44% to their own region – markedly more than the global average allocation to Western Europe, which sits at 26%. And across the globe, regional home bias is the rule, not the exception.

Asia-Pacific, North Asia, and Latin America show more international diversification, but globally, nearly 80% of assets remain concentrated in North America and Western Europe. For family offices, proximity still feels like safety.

What’s next? More equities, more private markets

Looking five years ahead, developed market equities remain the top pick, with 46% of family offices planning to increase allocations. A third or more also expect to lean further into private equity (both direct and fund-based), private debt, and emerging market equities.

Real estate, long seen as a defensive asset class, is making a cautious comeback as 29% plan to increase allocation, though 19% say they’ll reduce exposure. Gold and infrastructure are also gaining attention.

Public equities still lead, but private markets are carving out a larger space in the long-term blueprint.

Investment themes

The top themes this year? Healthcare, electrification, generative AI, and energy transition.

Healthcare leads with 35% of family offices reporting a clear strategy in place. Almost as many say the same about electrification (29%), AI (27%), and energy transition (27%).

But the chart also shows a curiosity gap. Around half say they’re either unfamiliar with these themes or still figuring out how to engage with them.

Active over passive

In the broader market, passive strategies have grown dominant, driven by cost pressures and access. But not in family offices.

Globally, 64% of family office portfolios are actively managed, and in Asia-Pacific and North Asia, that number jumps to 78% and 84%, respectively.

This reflects a unique reality: family offices can afford the fees. And with that, they can afford the nuance. Active strategies allow them to tilt toward preferred geographies, sectors, and values in a way passive doesn’t.

When you’re navigating complexity with capital and conviction, control matters more than cost.

Top concerns: Trade war today, geopolitics tomorrow

When asked what they were most worried about the next 12 months, 70% of family offices said a global trade war. Many also flagged geopolitical conflict (52%), inflation (44%), higher interest rates (33%), and a global recession (33%).

But looking at the next five years, the top three concerns shift to geopolitical conflict (61%), global recession (53%), and debt crisis (50%). Climate change (48%) and financial crisis (46%) also register high on the long-term worry index.

If the survey were taken today, one suspects geopolitical risk might have topped the 12-month list too. Things change quickly.

In-house vs. outsourced

Two-thirds of family offices say they perform most functions in-house. Why? Because they can. 67% cite internal expertise. Another 63% point to operational control and privacy.

Outsourcing happens only when scale, skill, or cost creates a compelling case. Even then, it’s approached with caution.

Succession planning: Still a weak link

Only 53% (up from 47% in 2024) of family offices have a formal succession plan. And even fewer include the next generation from the start.

The most common reason for having no plan? “We’ve got time.” That’s wishful thinking at best. Over a fifth (21%) say the beneficial owner hasn’t decided how to divide wealth. Another fifth (18%) simply haven’t had time to discuss it.

When future leadership is discussed, the conversation rarely includes those expected to lead. Only 26% of family offices consult the next generation from the outset. More than a third (36%) involve them only after speaking with the first generation. And 35% don’t involve them at all.

Meanwhile, expectations are high. Globally, 59% of family offices say next-gen members will have a seat on the board. Among those already serving second or third generations, that figure rises to 70%. But involvement in day-to-day investment management? Just 30%.

Over half (53%) say preparing the next generation to take on wealth responsibly is a challenge.

If the goal is legacy, the process needs to match the ambition. Otherwise, you’re planning for the future while leaving it dangerously undefined.

Conclusion

For a community sitting on significant capital, family offices remain refreshingly measured.

Even amid geopolitical tension and volatile markets, their instinct isn’t retreat. The data suggests they’re recalibrating rather than rethinking, and building resilience through diversification, education, and selective innovation.

The future may be uncertain, but their approach is anything but reactive.