#Why Are Wealthy Families Shifting Their Focus Away from US Markets?
Wealthy families around the globe are reevaluating their investments in American markets. The 2025 Global Family Office Report from UBS Group, which surveyed 317 family offices worldwide, reveals a significant trend of international ultra-rich investors decreasing their exposure to the United States. In stark contrast, American family offices are amplifying their domestic investments, with a notable 86% of their portfolios allocated to North America, a figure that has incrementally increased year over year.
This growing divide is noteworthy. Non-US family offices are actively reallocating their capital away from North America, opting to build cash positions and pivot their investments toward regions like Western Europe and Asia-Pacific. Meanwhile, US-based family offices are doubling down on their domestic bias.
#What Drives Non-US Family Offices to Diversify?
The primary factors influencing this shift include concerns over a global trade war, rising geopolitical conflicts, and persistent inflation. These risks are compelling non-US family offices, especially those in Asia-Pacific, to consider more favorable investment opportunities elsewhere amid market volatility.
Historically, more than half of global family office portfolios were weighted toward North America. Today, that percentage is shifting as these families actively adjust their strategic asset allocations in response to changing market conditions.
#Why Are US-Based Family Offices Sticking with Domestic Investments?
While foreign family offices are withdrawing, the trend is reversed for their US counterparts. The significant allocation of 86% to North America is not merely a continuation of past trends but signals an active decision to minimize international investments.
#Where Are Non-US Family Offices Investing?
Non-US family offices are not merely waiting on the sidelines. The UBS report indicates an active reallocation into developed-market equities, private debt, and specific investments in Western Europe and Asia-Pacific. Family offices in the Asia-Pacific region are particularly nimble, leveraging their familiar networks to implement capital in their local markets.
#What Should Investors Take Away From This Shift?
The ongoing trend of diversification emphasizes the potential for alternative asset classes. UBS is exploring services in cryptocurrency trading, including major digital currencies such as Bitcoin and Ethereum, although this initiative operates separately from the broader allocation trends observed among family offices.
When a substantial number of family offices signal a collective move away from US market concentration, it is more than mere speculation. This development is indicative of a longer-term trend that investors should be mindful of when planning their own investment strategies.