“U.S. family offices are staying home,” said Mathews, who heads the bank’s private wealth unit in the Americas.
The participating families reported an average net worth of $2.7 billion, with their family offices managing $1.1 billion each.
American family offices are even more bullish on stocks, planning to ramp up their developed and emerging market exposure from 28% to 32% this year.
Family offices, Mathews said, are “leaning a little bit more into the public markets, public equities and fixed income.”
Further, according to the survey, family offices appear positioned to unwind some of these cuts in the future.
The original version of this article was published in CNBC’s Inside Wealth newsletter featuring Robert Frank, which is a weekly guide to wealthy consumers and investors. Register to receive upcoming editions directly in your inbox. Family offices in the United States are increasing their investments in the country despite mounting concerns about a “sell America” trade. S. . a recent survey on stocks and the economy. U. A. According to the UBS Global Family Office Report, family offices, which are the private investment divisions of affluent families, held 86 percent of their portfolios in North America in the first quarter, up from 74 percent in 2020. No other nation or region reported a higher level of home bias among the 317 global family offices surveyed. The survey was conducted by UBS starting in January. 22 to April 4, which means that it concluded two days after the world markets were rocked by President Donald Trump’s tariff announcement. Even though the stock market has recovered, investors remain wary of the U.S. S. . assets as the United States’ soaring debt and trade war talks loom large. However, UBS’s John Mathews told CNBC that domestic family offices have not fallen for the “sell America” narrative. The U. S. He stated that the market’s track record of outperforming is only one factor. “You. S. . The bank’s private wealth unit in the Americas is led by Mathews, who stated, “Family offices are staying at home.”. “You make investments in things you understand, in places you know, and in businesses and technologies you know when things are uncertain. That’s what I believe we’re witnessing somewhat at the moment. With their family offices handling $11 billion apiece, the participating families reported an average net worth of $27 billion. According to Mathews, it will take time to determine how family offices abroad will eventually adjust their allocations. The majority of the assets held by international respondents were in North America, with the exception of European companies; the percentage for Latin American family offices peaked at 64 percent. Merely 12% of participants stated that they intended to reduce their investments in North America during the ensuing five years. Thirty-two percent of them intended to increase their North American allocation. With 35% of the total investment, Asia-Pacific was the most popular region. Mathews attributed the region’s growing tech scene in part to interest in the area, which does not include Greater China. Global family offices made more investments in developed market stocks, primarily in the U.S. S. . decreased from 24% to 26% in the previous year. In 2025, they intend to increase the allocation to 29 percent, doubling it. American family offices intend to increase their exposure to developed and emerging markets from 28 percent to 32 percent this year, demonstrating their even greater optimism about stocks. According to the report, family offices believe that investing in stocks and big public companies is a good way to support their main themes, which include advancements in healthcare, power and energy generation, and artificial intelligence. Family offices are “leaning a little bit more into the public markets, public equities, and fixed income,” according to Mathews. He went on to say, “I think it’s just the opportunity to have access to maybe a quicker opportunity with the market volatility.”. As you may know, the U. S. . possesses the world’s most conservative and deepest markets. Family offices are withdrawing from private equity, at least for the time being, as they’re entering public markets. Following years of increasing their allocations, which peaked at 22% in 2023, family offices reduced their private equity allocation by 1% last year and intend to reduce it by an additional 3% this year to reach 18%. The U. S. Family offices plan to reduce their 35 percent stake in direct and fund investments by 8 percent, marking an even more substantial pullback in private equity. However, Mathews pointed out that family offices still have a lot of stakes in the outcome of private equity. Additionally, the survey indicates that family offices seem to be in a position to reverse some of these cuts in the future. Over one-third of businesses anticipate raising their direct private equity over the next five years (37 percent). Additionally, a comparable proportion (34 percent) are considering investing in funds or funds of funds. “A significant portion of our family offices are involved in private equity and private transactions. He stated, “They have been delayed while they wait for those exits. “They usually go all in when they see the right one, but I think they’re just being pickier. ” U. A. In contrast to overseas participants, who only plan to add 1 percent, family offices intend to make another significant change to their portfolios, increasing their real estate allocations by 8 to 18 percent, for a total of 11 percent. With 19% planning to reduce their allocation over the next five years and 29% intending to increase it, family offices have a mixed long-term outlook. According to Mathews, this disparity can be explained by the wealth and location of the families. “If your family office specializes in real estate, you might be considering this as a chance to reduce staff. If your family office isn’t focused on real estate, you’re most likely viewing this as a chance to look into purchasing home debt,” he said. “Real estate investments and properties are being examined by family offices, which see significant potential, particularly if those properties continue to decline. “,”.
Getty Images | Moment | Andrey Denisyuk.
This article was originally published in CNBC’s Inside Wealth newsletter, which features Robert Frank and is a weekly guide to high-net-worth consumers and investors. Register to have future editions delivered directly to your inbox.
American family offices are increasing their wagers on the United States despite mounting concerns about a “sell America” trade. A. a recent survey on stocks and the economy.
