Among alternative investments, hedge funds are used by a third (33%) of family offices globally for diversification purposes, according to the UBS Global Family Office Report 2024. In its latest report, UBS surveyed 320 single-family offices globally with an average net worth of $2.6bn and covering over $600bn of wealth. By region, family offices in North America allocate 35% of the average portfolio to private equity and 8% for hedge funds; in Latin America, 18% and 2%; in Switzerland, 18% and 3%; in the rest of Europe, 22% and 4%; in the Middle East, 27% and 5%; in North Asia, 18% and 6%; and in Southeast Asia, 19% and 5%. Looking ahead, North America and APAC (excluding Greater China) are set to be the top destinations for increased allocations, with over a third of family offices planning to boost investments in these regions (38% and 35% respectively). Confidence in active management as a diversification strategy has risen, with nearly 39% of family offices globally relying more on manager selection and active management, a 4% increase from 2023. Generative AI also emerges as the most popular investment theme, with 78% of family offices likely to invest in this area in the next two to three years.
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