World’s richest families fret about trade spat, climate change: Survey, Latest Business News - The New Paper

World’s richest families fret about trade spat, climate change: Survey

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LONDON: The world's richest families are worried about the US-China trade spat, Brexit, populism and climate change and are keeping more of their money in cash, according to a survey of family offices by the world's largest wealth manager.

Forty-two per cent of family offices - set up to manage the wealth of one or more rich families - have increased their cash piles this year, according to the survey of 360 family offices by Swiss bank UBS and Campden Wealth Research.

Total cash reserves were 7.6 per cent of family office investments in 2019, up 70 basis points from a year earlier.

Fifty-five per cent of family office executives expect recession to begin by next year, 63 per cent believe Brexit is negative for Britain as an investment destination in the long term and 84 per cent think populism will not fade by next year.

"Family offices are taking a dim view of geopolitical events," Ms Sara Ferrari, head of UBS' Global Family Office Group, said.

Fifty-three percent of family offices see climate change as the single greatest threat to the world, with newer generations running the family money putting sustainable investing high on the agenda.

Family offices' views did not necessarily differ from those of institutional investors or asset managers who help invest their money, Ms Ferrari said.- REUTERS