As we all know, the global economic environment is undergoing a period of uncertainty. Geopolitical tensions, shifting trade dynamics, inflationary pressures, and rapid technological advancement are reshaping markets and redefining investment opportunities.

Against this backdrop, Family Offices found themselves in a world in which both risk and opportunity are increasingly global, interconnected, and fast-moving. Notably, much of the available data stated in this article reflects sentiment prior to the most recent geopolitical developments, highlighting just how quickly the landscape changes. While we understand that positioning may already be shifting in response, the core themes identified are still highly relevant.

According to the 2025 UBS Global Family Office Report, a global trade war ranked as the single biggest investment risk for Family Offices, followed by major geopolitical conflict and inflation. At the same time, BlackRock found that 84% of Family Offices now view geopolitical uncertainty as a critical factor in capital allocation decisions.

Mention that these surveys are done before the recent conflict

For Family Offices, the ability to interpret and respond to these shifts has become more critical than ever.

How are Family Offices responding?

As one UBS executive noted, Family Offices are pursuing an “all-weather strategic asset allocation” in response to volatility. That mindset increasingly defines how many families are positioning for the years ahead.

Diversified investment strategies

Many Family Offices are broadening portfolios beyond traditional equities and fixed income. This includes private equity, venture capital, infrastructure, real assets, and sustainable investments, which continue to play a growing role.

Recent data support this shift. BlackRock reported that alternative assets now represent 42% of Family Office portfolios, up from 39% in its previous survey.

Increased global exposure

Geographic diversification has become more dynamic and tactical. Families are not only expanding into new markets but also continuously reassessing where capital is best positioned.

More established Family Offices are hedging their bets by building multi-jurisdictional footprints rather than relying on a single hub, for example, increasing exposure to more developed markets like London, New York, and other global financial hubs.

These examples reflect a broader shift: increased global exposure is no longer just about expanding internationally and creating more opportunities. Coupled with the turbulent geopolitical environment in the world right now, it is also about actively recalibrating geographic allocations in response to changing political, economic and structural conditions.

Greater focus on resilience and flexibility

Liquidity management, hedging strategies and scenario planning have become more central. According to UBS, Family Offices are increasingly using active management, hedge funds and, selectively, precious metals as portfolio hedges. BlackRock similarly found many are prioritising diversification, liquidity and, notably, “structural reassessment of risk.”  This marks an evolution from traditional risk management toward resilience-based portfolio construction.

Governance and investment decision-making

Governance is becoming more formalised as investment strategies grow more sophisticated and Family Offices become increasingly multigenerational. Recent findings from the UBS and Agreus Family Enterprise Governance Report reinforce that effective governance is often driven by clarity as much as complexity, with families using stronger decision-making structures, investment oversight, and regular governance reviews to support resilience and alignment.

We believe this is also closely linked to the quality of people supporting those frameworks. As our co-founder at Agreus, Paul Westall said, “In a volatile global environment, having your best people in-house is what gives Family Offices stability, control and the confidence to act decisively.”

As Family Offices continue to professionalise amid the challenges, governance is increasingly viewed not simply as a framework for oversight, but as a strategic advantage.

To conclude, Family Offices are no strangers to change, and it is evident that their long-term success has always depended on adaptability, disciplined thinking, and a willingness to evolve as markets and circumstances shift.

In today’s environment, adaptability is being tested across multiple dimensions, from geopolitical realignment and shifting capital flows to more complex governance and organisational needs. The most resilient Family Offices are those that continue to refine their structures, strengthen decision-making, and remain flexible in how they deploy capital across generations.

As these challenges become more complex, many families also benefit from external perspectives to help them assess governance frameworks, build effective teams and align structures with long-term objectives. This support can help bring clarity to decision-making and ensure that both strategy and execution remain fit for purpose.

Contact Agreus today to see how we can help you and your family to be best positioned to preserve and grow wealth across generations.