Family offices urged to reduce exposure to US equities, treasuries

Topaz Family Office, a Hong Kong-based advisory firm, has urged family offices to reduce exposure to US equities and treasuries, citing rising tariff tensions and a weakening domestic outlook. The firm said asset allocators should diversify into markets like Japan, Australia, and the UAE to manage risk-return ratios more effectively. A 2024 Citigroup survey showed 60% of global family office assets remained in North America, up from 57% in 2023. Topaz has since cut its US exposure from 52% to 34%, reallocating funds to China, Japan, and commodities. The firm also trimmed Tesla holdings amid concerns over CEO Elon Musk’s political involvement. Executives warned that the current environment represents a critical juncture for family offices seeking more defensive, globally diversified portfolios.