UBS Report Sees Family Office Interest in Digital Assets

The 2022 UBS Global Family Office Report, which surveys 221 single family offices around the world, finds that digital transformation registers most with 84% of respondents as an investment theme, and that many offices are investing in digital assets “to learn rather than earn”.

The report says, at a high level, that family offices are entering a new era of strategic asset allocation as high inflation, central bank liquidity and rising interest rates compel them to review their investment options. They are reducing fixed income allocations and increasing investments in private equity, real estate, and private debt, sacrificing liquidity for returns.

On digital assets, the report says that the 84% citing digital transformation as the investment theme that resonates most with them, are interested across e-commerce, data, artificial intelligence, the cloud and blockchain.

On digital assets and distributed ledger technology (DLT), specifically, a third (35%) of family offices either invested in DLT or considered doing so in 2021. A quarter (26%) were investing in cryptocurrencies or considering it.

The report also states, however, that many family offices are investing in digital assets and distributed ledger technology to learn rather than earn. “Aware of the disruptive potential of blockchain, they are keen to understand the technology and its business applications,” UBS says.

More than two thirds (69%) say they are investing because they believe decentralised payments and technologies will be widely used. Similarly, over half (53%) of those investing in cryptocurrencies, or considering doing so, want to learn about the technology. That compares with just under half (49%) who are doing so for purely financial reasons.