Family offices keep ‘strong bias to the U.S.’ amid market turmoil, UBS survey finds

A UBS survey of 317 family offices, each managing an average of $1.1 billion, reveals a continued strong preference for U.S. investments despite ongoing market volatility. The 2024 Global Family Office Report indicates that family offices are maintaining their allocation to U.S. assets, suggesting confidence in the region's long-term economic prospects relative to other global markets.

Analysis

The UBS 2024 Global Family Office Report, surveying 317 family offices each managing an average of $1.1 billion, reveals a sustained and significant allocation preference for U.S. investments. This 'strong bias to the U.S.' persists despite ongoing market volatility, indicating that these sophisticated, large-scale investors continue to view the United States as offering favorable long-term economic prospects relative to other global markets. The report highlights that family offices are largely maintaining their existing U.S. asset allocations, a stance that suggests a conviction in the region's stability and growth potential. The associated neutral sentiment score (0.1) and low market impact score (0.2) for this information suggest the findings are perceived as a confirmation of current capital deployment strategies rather than a novel, market-moving catalyst.

Key Decisions for Investors

• Investors should note the continued confidence of significant institutional capital, specifically family offices, in U.S. assets, which could lend support to valuations and offer a degree of stability in U.S. markets over the long term.
• Consider reviewing current portfolio allocations to U.S. markets in light of this persistent institutional preference, particularly if strategic objectives include long-term growth and capital preservation amid global economic uncertainties.
• Monitor future reports on family office allocations for any shifts in this U.S. preference, as significant changes could signal evolving views on global economic leadership or relative risk-reward profiles among major markets.