Surge in De-Dollarization Trade Reshapes Global Asset Allocation

Key Takeaways

• Wealthiest families are quietly dumping dollars. UBS reveals 60% are overhauling portfolios amid rising global risks.
• De-dollarization trade accelerates: Family offices slash USD exposure cuts and rush into emerging markets, gold, and alternatives.
• Dollar’s reserve share hits record low below 45%. Why wealthy investors diversify faster than ever before.

Wealthiest investors are ramping up the de-dollarization trade as global tensions mount. UBS’s latest survey shows family offices actively cutting USD exposure, with nearly one-third planning further reductions. This family offices shift stems from fears over U.S. debt levels and eroding dollar dominance. Offices managing billions now pivot toward emerging markets, infrastructure, and alternative assets. The moves mark the broadest reallocation in recent years and could reshape global capital flows.

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De-Dollarization Trade Intensifies Amid Surging Geopolitical Risks

Geopolitical uncertainty now propels the de-dollarization trade higher among wealthy investors. Family offices cite escalating global conflicts, from Ukraine to the Middle East, as key reasons to reduce reliance on U.S. assets. Rising sovereign debt and volatile policies further amplify these concerns. 

According to the UBS Global Family Office Report, 60% of family offices plan major strategic shifts in the next 12 months. Additionally, wealthy investors diversify their portfolios faster than in previous periods. This marks roughly double the pace seen in recent years. Many are trimming U.S. holdings while adding exposure to emerging markets in Latin America and Africa. 

On that matter, John Mathews, UBS head of private wealth management for the Americas, explained: 

“Today it’s really shifted to geopolitical tensions around the world, global debt, and now interest rates. And not just the short-term implications, but the longer-term implications of these as well.” 

North America stands as the only region where family offices plan to cut allocations overall. This trend underscores a broader move toward geographic diversification amid heightened risks. 

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Family Offices Shift Eyes Emerging Markets and Alternatives

Family offices are channeling fresh capital into emerging markets and alternative assets as part of their broader family offices shift. Many are boosting allocations to Latin America, Africa, and Asian equities while increasing holdings in infrastructure and gold. This strategic pivot aims to spread risk beyond traditional developed markets.  

Surveyed offices also favor the Swiss franc and euro for currency diversification, seeking protection against potential dollar weakness. As Blocknow reported a few weeks ago, the US dollar’s share of global foreign currency reserves has fallen below 45% for the first time this century, fueling wider de-dollarization momentum.  

This family offices shift reflects a deliberate move toward multi-jurisdictional portfolios. With geopolitical risks at the forefront, these investors prioritize resilience through broader geographic and asset class exposure rather than concentrated U.S. bets.

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