Family offices in Southeast Asia are recalibrating their investment strategies to favor liquidity and exposure to developed markets, as heightened concerns over a global trade war, geopolitical instability, and inflation dominate the outlook for 2025, according to UBS’s Global Family Office Report 2025.
The annual survey, based on responses from 317 single family offices globally—with an average net worth of USD 2.7 billion and average assets under management of USD 1.1 billion—provides the most comprehensive analysis yet of the priorities and portfolio shifts within this highly influential investor class.
In Southeast Asia, traditional asset classes dominate family office portfolios, with 69% of holdings allocated to equities (31%) and fixed income (27%).
Alternative assets account for the remaining 31%, primarily private equity (11%) and private debt (6%). Amid market volatility and concerns over government debt levels, family offices in the region are tilting their allocations toward safer and more liquid assets.
North America remains the top destination for Southeast Asian capital, receiving 56% of total portfolio allocations, followed by Asia-Pacific (excluding Greater China) at 21%, and Western Europe at 12%.
Looking ahead, 33% of Southeast Asian respondents plan to increase exposure to Greater China, while 28% will ramp up investments in India and Taiwan.
Globally, 70% of family offices cited a global trade war as the top threat to their financial objectives in 2025, while 61% anticipate that major geopolitical conflicts will present risks over the next five years.
Despite this, 59% of family offices expect to maintain their current level of portfolio risk, although 38% say they struggle to find suitable risk-mitigation strategies.
To hedge against volatility, 40% of family offices globally are leaning more on manager selection and active management. Hedge funds (31%), short-duration high-quality bonds (26%), and precious metals (19%) are also gaining popularity as defensive allocations.
Private equity, a long-time favorite among family offices, is seeing modest reductions. Allocations to private markets are expected to drop from 21% in 2024 to 18% in 2025 as high interest rates, tight credit conditions, and weak exit environments dampen appetite—particularly for direct deals.
Amid this uncertain environment, succession planning has emerged as a critical issue. Globally, just 53% of family offices have formal wealth transfer plans in place.
In Southeast Asia, this figure is likely lower, as cultural factors and sensitivities around intergenerational wealth continue to delay planning.
Among offices without a plan, 29% believe they still have time, while 21% said the primary wealth holders have yet to decide on how to divide assets.
“Despite market stressors, family offices are holding firm on their long-term investment goals while becoming more selective in how they pursue diversification and yield,” said UBS Global Wealth Management. “The shift toward public markets and defensive strategies signals a pragmatic, risk-aware approach.”
Business News Asia