Investment priorities of family offices in the next 2-3 years. Source: UBS Evidence Lab
Taking advantage of family offices’ institutional nature, access and flexibility, portfolios continue to be broadly diversified across a range of asset classes. According to the survey of UBS Evidence Lab in 2021.
Family offices are placing their equity bets on the themes that will dominate the global economy in the 2020s, many related to the interplay of technology with environmental and social opportunities.
Following the global pandemic, health tech is the biggest investment theme for family offices, with over 86% of them seeking investments in this area over the next two to three years. At the same time, more than 70% of family offices look to invest in areas linked to digital transformation, automation and robotics, smart mobility, and green tech.
Cool heads rule
Looking at the short-term positioning and the key concerns, valuations and rising inflation rates worry family offices across the globe. In response, 36% are hedging/reducing their equity position, whilst 53% are not. This environment is very attractive for alternative assets and family offices are increasing their exposure to private markets with 40% intending to increase private equity, 26% hedge funds, 19% real estate.
Note: UBS Evidence Lab surveyed 191 UBS clients globally between 18 January and 15 February 2021. Participants were invited using an online methodology and were distributed across 30 markets worldwide. Global Family Office Report 2021.
The price and value of investments and income derived from them can go down as well as up. You may not get back the amount originally invested.
