Why Family Offices Are Focusing on U.S. Stocks for 2025: Insights from UBS

American family offices are betting big on the U.S. economy. A recent survey by UBS shows that these private investment groups are keeping 86% of their portfolios in North America, up from 74% in 2020. This is the highest home bias of any region among 317 global family offices surveyed. The results came just after President Trump’s tariff announcement, which had shaken markets.

Even with worries about trade conflicts and rising national debt, American investors seem unfazed. John Mathews from UBS noted that family offices are gravitating towards familiar ground. "In uncertain times, people invest in what they know," he said.

Families in the survey had an average net worth of $2.7 billion, with each family office managing about $1.1 billion. Notably, only 12% of participants plan to cut back on North American investments in the next five years. In contrast, 32% plan to increase their investment in the region. For international family offices, particularly those in Latin America, North America remains a stronghold, with 64% of assets concentrated there.

Globally, interest in developed markets, mainly the U.S., is on the rise. Family offices upped their allocation to these markets from 24% to 26% last year, with plans to bring it to 29% by 2025. This shift suggests a growing confidence in U.S. stocks, particularly in sectors like artificial intelligence and healthcare.

Interestingly, while family offices are moving towards public markets, they are pulling back on private equity. After years of strong investment in this area, they reduced their private equity allocation by 1% last year and plan to cut it by another 3% this year.

Real estate is another area seeing mixed interest. U.S. family offices are looking to boost their allocations by 8%, while international firms plan a modest increase of just 1%. Some families see current property prices as an opportunity, particularly if they expect a downturn.

The survey paints a picture of caution mixed with optimism. Many family offices remain committed to U.S. investments, reflecting a strong belief in the U.S. economy while carefully balancing their portfolios to adapt to changing conditions.

For more detailed insights, check out the full report from UBS.

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