A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register to receive future editions, directly in your reception box. Despite growing fears of a “Sell America” trade, American family offices accelerate their bets on the economy and American actions, according to a new survey. American family offices, private investment weapons from wealthy families, had 86% of their portfolios in North America in the first quarter, against 74% in 2020, according to the UBS Global Family Office report. In the survey of 317 world family offices, no other region or countries has reported such a high domestic bias. UBS conducted the investigation from January 22 to April 4, which means that it ended two days after the price announcement of President Donald Trump upset the world markets. Although the stock market has rebounded, investors are still cautious about American assets as trade war negotiations and American hot air balloon debt. However, domestic family offices did not buy the story “Sell America,” said John Mathews from UBS to CNBC. The history of outperformance of the American market is only a factor, he said. “American family offices are at home,” said Mathews, who heads the bank's private wealth unit in the Americas. “In times of uncertainty, you invest in things you understand, you invest in the world regions you know and invest in companies and technologies you know. I think that is what we see a little at the moment.” The participating families declared an average net value of $ 2.7 billion, their family offices managing $ 1.1 billion each. Time will tell us how family offices abroad move their long -term allowances, said Mathews. With the exception of European companies, international respondents allocated the lion's share of their assets to North America, culminating at 64% for family offices in Latin America. Only 12% of respondents said they planned to reduce investments in North America over the next five years. Almost a third (32%) planned to increase their allowance to North America. The most popular region for the increase in investments was 35%Asia-Pacific. Mathews has attributed the interest in the region, which excludes Greater China, partly to the emerging technological scene of India. Global family offices have increased their allocation to the stocks of the developed market (mainly the United States) from 24% to 26% last year. They plan to double in 2025, bringing the 29%allowance. The offices of the American family are even more optimistic about the shares, providing for raising their exposure to the developed and emerging market from 28% to 32% this year. The report indicates that family offices consider actions and large public companies as an effective means of investing in their key themes, which include artificial intelligence, energy and energy production and health care progress. Families, according to Mathews, “lean a little more on public procurement, public actions and fixed income securities”. “I think it's just an opportunity to have access to perhaps a faster opportunity with market volatility,” he added. “You know, the United States has the deepest and most conservative markets in the world.” As they move on public procurement, families withdraw from investment capital, at least for the moment. After years to increase their allowances, to a peak at 22% in 2023, family offices reduced their investment capital allowance by 1% last year and plan to reduce 3% this year to reach 18%. US family offices intend to make an even more significant withdrawal in investment capital, by taking up their 35% allowance in direct and financing investments of 8%. However, Mathews noted that family offices still have a lot of skin in the game with regard to investment capital. In addition, according to the survey, family offices seem to be positioned to relax some of these cuts in the future. Over the next five years, more than a third of companies expect to increase their direct investment capital (37%). And a similar number wishes to invest in funds or funds (34%). “Many of our family offices have a large exposure to private actions and private agreements. They are waiting for these outings and have been delayed,” he said. “I think they are just more selective, but when they see the right one, they generally go everything.” American family offices plan to make another substantial adjustment to their portfolios, increasing their real estate benefits from 8% to 18% while participants abroad intend to add 1% for a count of 11%. In the long term, family offices have mixed prospects, 29% intended to increase their allowance over the next five years, while 19% plan to decrease. This gap can be attributed to the way families have made a fortune and where they are, said Mathews. “If you are a family-oriented family office, you may consider it an opportunity to go back. If you are not a property-focused family office, you probably consider it as an opportunity to try to buy home debt,” he said. “Family offices examine property and real estate investments and see great opportunities, especially if there are new decreases in these properties.”
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A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register To receive future editions, directly in your reception box.
Despite growing fears of a “Sell America” trade, American family offices accelerate their bets on the economy and American actions, according to a new survey.