Family Office Asset Allocation Shifts From Real Estate to AI, UBS Finds

Family offices managing billions of dollars are becoming increasingly cautious about geopolitical tensions, sovereign debt risks and the long-term role of the US dollar while continuing to increase exposure to artificial intelligence investments, according to the latest UBS Global Family Office Report.

The family office asset allocation survey covered 307 family offices with average assets under management of USD1.3bn.

UBS found that 64% of respondents view geopolitical conflict as the biggest risk over the next 12 months, while 56% expect a debt crisis to become a major threat over the next five years.

The report also showed that 60% plan to change their family office asset allocation in 2026, the highest proportion recorded in the survey’s history.

Real estate allocations are expected to fall to 8% from 11%, while gold holdings and currency diversification strategies are gaining popularity as hedges against geopolitical uncertainty and potential US dollar weakness.

The findings highlight how family offices are increasingly prioritising flexibility, alternative assets and technology-driven growth opportunities.