Global Wealthy Shift Away from US Dollar Amid Geopolitical and Economic Risks
JAKARTA, CNBC Indonesia – Global wealthy individuals are reducing their reliance on US dollar-based assets. This trend is evident as numerous family offices, which manage the wealth of ultra-high-net-worth families, are shifting their investments out of the US.
A UBS Global Family Office report reveals that 60% of family offices plan to adjust their investment allocation strategies within the next 12 months, nearly double the portfolio change trend observed over the past five years. North America is the only region projected to see a reduction in investment allocation, while global wealthy investors are increasing exposure to emerging markets such as Latin America and Africa.
John Mathews, UBS’s Head of Private Wealth Management for America, said investor concerns have shifted from trade wars to larger risks. Current focus is on global geopolitical tensions, sovereign debt, and interest rates. “It’s not just short-term implications, but also long-term impacts,” Mathews stated, as reported by CNBC International on Friday, 29 May 2026.
Concerns over the US stock market’s excessive concentration, AI bubble risks, trade wars, dollar weakness, and rising government debt have prompted family offices to diversify investments across multiple countries. This phenomenon has led to a new strategy called “jurisdictional diversification”, spreading assets to reduce geopolitical and economic risks.
UBS notes two-thirds of family offices now hold investments in at least three different jurisdictions. A key focus for global wealthy investors is reducing exposure to the US dollar, known as “de-dollarisation”. The survey shows over a quarter of family offices plan to cut holdings of dollar-based assets. Two-thirds of respondents expect confidence in the US dollar’s status as a global reserve currency to continue declining, with nearly half believing their current portfolios are overly reliant on the dollar.
As alternatives, investors are turning to Swiss francs and euros for currency diversification. Gold, emerging market equities, and infrastructure projects are projected to be new investment targets for global wealthy individuals.
UBS identifies geopolitical uncertainty as the top risk over the next 12 months to five years, alongside trade wars, hyperinflation, cyberattacks, and debt crises.
However, there is a stark contrast between US-based and non-US wealthy investors. US family offices are becoming more aggressive in domestic investments, with their US asset allocation rising from 86% to 88% over the past year. “US family offices have actually doubled down on investments, while family offices elsewhere are increasingly diversifying away from dollar-denominated securities and gradually reducing exposure to the US,” Mathews said.