Family Offices Focus on Investments Over Non-Financial Risks

  • UBS survey reveals many global family offices aren’t prepared for wealth transfer to next generation
  • Only 24% of families prioritize reputational risks
  • 40% have cybersecurity controls in place, down from 44% last year
  • Family offices with over $1 billion in assets pay more attention to non-financial risks
  • About $1.2 trillion will be passed down to the next generation within 20 years

A recent UBS survey of global family offices reveals that many wealthy families are more concerned with their investments than preparing for the transfer of wealth to future generations. The survey found that only 24% prioritize reputational risks and 40% have cybersecurity controls in place, while those with over $1 billion in assets pay more attention to non-financial risks. About $1.2 trillion is expected to be passed down within the next 20 years.

Factuality Level: 7
Factuality Justification: The article provides information based on UBS’s annual survey of global family offices, including statistics and quotes from Judy Spalthoff, head of family office solutions at UBS in New York. The article presents facts about the concerns and priorities of wealthy families regarding investments, risks, and non-financial aspects, supported by data from the survey. The information is relevant and based on the survey findings, making the article fairly factual.·
Noise Level: 3
Noise Justification: The article provides a detailed analysis of the priorities and concerns of wealthy families regarding their investments and risks. It discusses the findings of UBS’s annual survey of global family offices, highlighting the focus on financial risks over non-financial risks. The article includes specific data and percentages from the survey, as well as insights from Judy Spalthoff, head of family office solutions at UBS. It also touches on the importance of addressing non-financial risks such as cybersecurity, wealth succession, and governance. Overall, the article stays on topic, supports its claims with evidence from the survey, and offers valuable insights into the mindset of wealthy families when it comes to managing their wealth and risks.·
Public Companies: UBS (UBS)
Key People: Judy Spalthoff (Head of Family Office Solutions at UBS in New York)

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Financial Relevance: Yes
Financial Markets Impacted: The article discusses the investment strategies of wealthy families, including their allocation to developed market bonds, real estate, and publicly traded stocks. It also mentions that these families are not prioritizing non-financial risks such as cybersecurity and wealth succession planning.
Financial Rating Justification: The article discusses financial topics related to investments and asset allocation, and it highlights the potential impact of non-financial risks on family offices and their wealth management strategies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: ·

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