The wealthiest investors are pulling money out of the U.S. in the ‘de-dollarization’ trade Family offices are planning significant portfolio shifts, with many reducing U.S. holdings and increasing investments in emerging markets due to concerns over geopolitical tensions, global debt, and interest rates. This trend, termed ‘jurisdictional diversification’ and ‘de-dollarization,’ aims to hedge risks across multiple countries and currencies, with the Swiss franc and euro being preferred alternatives to the U.S. dollar. While U.S. family offices are concentrating assets domestically, their international counterparts are actively diversifying globally.

• 60% of family offices plan strategic investment allocation changes in the next year, double the rate of the past five years.
• Many are reducing U.S. holdings and increasing investments in emerging markets, Latin America, and Africa.
• Key concerns driving these changes include geopolitical tensions, global debt, interest rates, AI bubble fears, tariffs, a falling dollar, volatile economic policies, and rising debt yields.
• The strategy of ‘jurisdictional diversification’ involves spreading money across multiple countries to hedge risk.
• Two-thirds of family offices have bankable assets in at least three jurisdictions; nearly a third have them in at least four.
• Over a quarter of family offices plan to lower their holdings of U.S. dollar-denominated assets, with many expecting confidence in the dollar’s reserve role to fall.
• The Swiss franc and euro are preferred currencies for diversification.
• Geopolitical uncertainty is identified as the top risk for the next 12 months and five years, followed by global trade war.
• Family offices plan to increase emerging market equities, infrastructure, and gold investments, while slightly reducing cash and real estate.
• A divergence exists between U.S. and non-U.S. family offices: U.S. offices are increasing domestic asset concentration, while international offices are diversifying out of the U.S. dollar and U.S. markets.