Asset allocation
What family offices hold and why: the annual survey data by asset class and region, alternatives, hedge funds, cash, real assets, valuation signals and benchmarking.
UBS's 2026 report puts the average family office at 42% alternatives, with real estate being cut, equities edging up and 60% planning allocation changes.
Surveys put family office alternatives at 35% to 45% of portfolios. The spread comes from sample mix and definitions; the common thread is less liquidity.
US family offices hold over half their portfolios in alternatives and 88% in North America. Asian and Latin American offices hold far more cash and bonds.
Family office private equity weights peaked at 22% in 2023 and fell to 17% by the end of 2025, with no further cut planned. Funds still outweigh direct holdings.
Hedge funds are 5% to 6% of family office portfolios across the main surveys. UBS's 2026 data show 6%, up from 4% in 2024, with 6% planned again for 2026.
Family offices hold 8% to 13% in cash and 11% to 17% in bonds. With policy rates near 4% and the US 10 year above 5%, bonds are earning their place again.
Gold is 2% to 3% of family office portfolios after a 44% rise in its average price in 2025. Real estate is being cut; infrastructure and gold edge up in 2026.
GMO's July 2026 forecast projects negative real returns for US large caps over seven years, with Shiller's CAPE near 40, against positive returns elsewhere.
With 42% of the average family office in alternatives, rebalancing means ranges, cash flow steering and secondaries rather than quarterly trades. Here is how.
Most family offices judge success on relative performance, yet reported returns are self-reported and uneven. Here is what the surveys and peer indices show.