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A family office is essentially a private wealth management advisory firm that serves ultra-high-net-worth individuals (UHNIs) and their families in managing and growing their wealth across generations. Often, family members hold a share in most of the family offices’ assets. In India, too, outbound investments routed through family offices for HNIs are now a topic of discussion amid the broader outbound fund flows.

Drawing on insights from 307 family offices across more than 30 markets, the report highlighted a notable shift in currency positioning. “Sixty-five percent of family offices expect confidence in the US dollar’s reserve status to weaken, with many reassessing exposure to USD-denominated assets,” the report said.

Another major theme was artificial intelligence (AI) as the leading global investment. UBS said 65% of family offices have already invested across the AI value chain, including data centre infrastructure, software platforms and producers of semiconductors.

Each of the family offices analysed in the report managed an average of $1.3 billion in assets. Participating families had an average net worth of $2.7 billion, and their total wealth amounted to $627.4 billion, UBS said.

It found that prevailing geopolitical uncertainty, especially with recent events in West Asia, is driving broader adoption of multi-currency frameworks, with the euro and Swiss franc emerging as preferred alternatives.

Among geographies, North America continues to account for the largest share of allocations, yet family offices are actively seeking to reduce concentration risk. Increasingly, they are planning to expand exposure to Asia Pacific, Greater China and Western Europe, reflecting a structural shift.

UBS found that family offices in the Middle East demonstrated the highest level of planned portfolio change globally, with 82% intending to adjust strategic allocations. Their portfolios remain anchored in North America (50%), but with meaningful exposure to Western Europe and the Middle East, reflecting a hybrid investment approach.

Family offices in the US exhibit the strongest home bias globally, with 88% of portfolios allocated to North America. This implies confidence in the depth, liquidity and resilience of domestic capital markets.

While AI remains the top investment theme (65%), those surveyed also show heightened interest in defence and security infrastructure (39%) and broader infrastructure investments (35%).

It may potentially reflect geopolitical considerations alongside growth opportunities, the report said. There are also concerns that certain AI stocks are overvalued at the moment, and an ‘AI bubble’ could burst when actual revenues fall behind the market hype.

“Artificial intelligence continues to stand out as the defining investment theme of this decade,” said Yves-Alain Sommerhalder, Head of Global Wealth Management Solutions at UBS. “Family offices are approaching it with both conviction and selectivity, seeking opportunities across the value chain while balancing long-term growth potential with risk discipline,” he added.

Family offices are allocating funds towards power and resources (37%), infrastructure (37%), and AI-enabled healthcare (33%), recognising the broader ecosystem required to support and scale AI adoption, according to the report.

By contrast, crypto and digital assets remain a niche allocation, with only 24% of family offices investing in them, typically at low single-digit levels. Allocations are usually modest (around 1%).

While family offices continue to professionalise investment operations, the report highlights persistent gaps in governance frameworks, succession planning and next-generation engagement, creating potential risks to long-term continuity.

Operationally, many family offices have adopted institutional-grade practices: 68% have formal financial performance measurement processes, 60% operate with investment committees, and over half use structured budgeting frameworks, reflecting a growing level of rigour and oversight, UBS said.

However, this progress is uneven. Fewer than half have implemented formal governance frameworks with board-level oversight, and only 35% have a defined succession plan for the family office itself.

“This gap is even more pronounced when it comes to the next generation. Only 27% have a structured process in place to educate and prepare their heirs for future roles, despite 29% citing that not enough financial or governance education is a challenge for involving the next generation,” the report said.