Family Offices Plan Major Portfolio Shifts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: CNBC
- Investment Reallocation: According to the UBS Global Family Office Report, 60% of family offices plan to make strategic changes to their investment allocations in the next year, a figure that is double the level seen over the past five years, indicating heightened sensitivity to market dynamics.
- Rising Geopolitical Risks: Family offices identify geopolitical uncertainty as the top risk for the next 12 months and the next five years, reflecting the complexity and unpredictability of the global economic environment, which drives them to seek broader risk diversification.
- De-Dollarization Trend: More than a quarter of family offices plan to reduce their holdings in U.S. dollar-denominated assets, indicating a declining confidence in the dollar's reserve role, which further encourages a preference for currencies like the Swiss franc and euro.
- Increased Emerging Market Investments: Family offices intend to boost their investments in emerging market equities, infrastructure, and gold, while slightly reducing their cash and real estate holdings, as a strategy to navigate global economic instability and potential high risks.
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Analyst Views on UBS
Wall Street analysts forecast UBS stock price to rise
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 46.840
Low
39.12
Averages
52.09
High
71.73
Current: 46.840
Low
39.12
Averages
52.09
High
71.73
About UBS
UBS Group AG is a Switzerland-based holding company and conducts its operations through UBS AG and its subsidiaries. The company operates as a wealth manager with focused asset management and investment banking capabilities and a capital-light and cash-generative business model. The Company comprises four business divisions: Global Wealth Management, which provides tailored advice and solutions to its clients around the globe; Personal & Corporate Banking division provides comprehensive financial products and services to private, corporate and institutional clients in Switzerland; Asset Management division offers investment capabilities and styles across all traditional and alternative asset classes, as well as advisory support to institutions; Investment Bank provides investment advice, financial solutions and capital markets access to institutional, corporate and wealth management clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Geopolitical Risks: Family offices identify geopolitical uncertainty as the top risk for the next 12 months and the next five years, reflecting the complexity and unpredictability of the global economic environment, which drives them to seek broader risk diversification.
- De-Dollarization Trend: More than a quarter of family offices plan to reduce their holdings in U.S. dollar-denominated assets, indicating a declining confidence in the dollar's reserve role, which further encourages a preference for currencies like the Swiss franc and euro.
- Increased Emerging Market Investments: Family offices intend to boost their investments in emerging market equities, infrastructure, and gold, while slightly reducing their cash and real estate holdings, as a strategy to navigate global economic instability and potential high risks.
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- Strong Financial Performance: In its most recent quarter, Micron's revenue nearly tripled to $23.8 billion, while net income surged nearly tenfold to $13.8 billion, with a 67.6% operating margin indicating significant profitability amid market tightness.
- Structural Supply-Demand Tightness: Management highlighted that the gap between supply and demand in the memory market is structural and expected to persist beyond 2026, with key customers only able to meet around 60% of their memory needs, indicating ongoing constraints and future growth potential.
- Optimistic Future Outlook: Micron anticipates third-quarter revenues between $32.75 billion and $34.25 billion, with adjusted earnings per share projected at $18.75 to $19.55, and analysts generally believe the company will exceed these targets, reflecting strong market confidence in its future performance.
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- Market Structure Evolution: Tyler Hutchens has been named Market Executive for the Greater Florida/Gulf Coast Market, responsible for overseeing multiple cities including New Orleans and Jackson, aiming to enhance UBS's presence in critical wealth centers.
- Strategic Expansion Plans: These appointments reflect UBS's commitment to the South Market, particularly in the context of rapid wealth growth, enhancing customer service and market competitiveness through strengthened leadership.
See More
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- Transport Disruptions: Shipping through the Strait of Hormuz remains severely impacted, with Iranian crude loadings in May plummeting to 300,000 barrels per day, down sharply from April's 1.5 million barrels, highlighting the ongoing war's effect on global energy supply.
- Uncertain Market Outlook: Despite hopes for a ceasefire, analysts warn that oil prices are likely to remain between $90 and $100 due to significant infrastructure damage and ongoing security challenges, with persistent skepticism surrounding the negotiations.
See More
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- Software Sector Pressure: The software industry accounts for 19% of private credit collateralized loan obligations, and as growth slows and margins compress, the repayment capacity of these loans is expected to be negatively impacted, adding to market uncertainty.
- Liquidity Crisis: With constrained liquidity, investors are beginning to attempt to withdraw funds, particularly with significant withdrawal requests anticipated in June, which could exert further pressure on the market and lead to more default events.
- Pension Fund Risks: While some large state pension funds continue to maintain investments in private credit, their significant risk exposure could have spillover effects on the broader financial markets, especially given that banks have loaned approximately $300 billion to private credit, potentially putting retail investors at risk.
See More
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- Rising Geopolitical Risks: Family offices identify geopolitical uncertainty as the top risk for the next 12 months and the next five years, reflecting the complexity and unpredictability of the global economic environment, which drives them to seek broader risk diversification.
- De-Dollarization Trend: More than a quarter of family offices plan to reduce their holdings in U.S. dollar-denominated assets, indicating a declining confidence in the dollar's reserve role, which further encourages a preference for currencies like the Swiss franc and euro.
- Increased Emerging Market Investments: Family offices intend to boost their investments in emerging market equities, infrastructure, and gold, while slightly reducing their cash and real estate holdings, as a strategy to navigate global economic instability and potential high risks.
See More
