Rich families cut US dollar exposure as geopolitical tensions reshape investment strategy: UBS report

The world’s wealthiest families are reassessing their dependence on the US dollar amid rising geopolitical tensions and rising considerations over sovereign debt, Reuters reported citing UBS’s World Household Workplace Report 2026.The survey by the Swiss financial institution discovered that almost two-thirds of household workplaces count on confidence within the US dollar as a worldwide reserve foreign money to weaken over the following yr, signalling a broader rethink of portfolio focus round US belongings.The findings are based mostly on a survey of 307 UBS shoppers worldwide performed between January and late March 2026, earlier than the dollar started outperforming a number of main currencies. Collaborating families had a median web value of $2.7 billion.In keeping with UBS strategist Maximilian Kunkel, the dollar’s depreciation within the yr earlier than the survey prompted many household workplaces to overview their holdings, with virtually half concluding they have been overexposed to the US foreign money throughout asset lessons.The report stated plans to cut exposure to dollar-denominated belongings mirror a wider diversification push past US-centric portfolios. Household workplaces are more and more taking a look at emerging-market equities and infrastructure investments, whereas lowering exposure to actual property.“For the primary time, we’re feeling that household workplaces wish to construct up in Asia Pacific and, to a sure diploma, additionally in Western Europe,” UBS government Benjamin Cavalli stated, as quoted Reuters.“That primarily impacts household workplaces outdoors the US, however we’re additionally seeing indicators {that a} very restricted a part of the de-dollarisation transfer is coming from U.S. household workplaces,” he added.UBS stated geopolitical battle has emerged as the highest concern for rich families by a large margin, influencing each investment allocation and operational technique.The report famous that many household workplaces are additionally exploring “multishoring” –spreading actions and constructions throughout a number of jurisdictions as a part of efforts to handle geopolitical and regulatory dangers.