Amid rising economic uncertainties, family offices worldwide are recalibrating their investment strategies concerning the United States. Before President Donald Trump's recent tariff announcement, many high-net-worth investors had already begun shifting focus from the U.S. market due to volatile stock prices and waning economic growth forecasts. These changes reflect a broader trend where affluent investors seek safer alternatives and geographic diversification. While some are investing in tangible assets like real estate or gold, others are holding cash as they await clearer market conditions.

In Singapore, Srihari Kumar, a former Goldman Sachs managing director and co-founder of TPG-Axon Capital, has traditionally maintained significant exposure to U.S. investments through his family office, LionRock Capital. Historically allocating around 40% of its portfolio to U.S.-based opportunities, Kumar recently adjusted this allocation, reducing it slightly below 40% while increasing international investments beyond the U.S. and India. He attributes this shift to concerns over tariffs and reduced government spending, which heighten economic uncertainty and risk potential stagnation without corresponding interest rate adjustments.

Despite these reservations, Kumar remains optimistic about long-term prospects for American technology sectors such as artificial intelligence. However, given elevated stock valuations domestically alongside emerging global opportunities, he advocates pausing further U.S. investment expansions. This sentiment resonates among other family offices globally, prompting them to reconsider regional allocations amidst evolving geopolitical dynamics.

Data from the UBS Global Family Office Report reveals that half of all family office assets were invested in North America during 2024. European markets followed distantly at 27%, trailed by Asia-Pacific regions including China. Notably, North American-based family offices exhibited less diversified portfolios compared to their counterparts abroad, with nearly 82% of assets concentrated within the continent. Meanwhile, Asian and Middle Eastern entities allocated approximately 49% of funds into North American ventures.

Industry experts debate whether this movement away from U.S. investments represents a temporary adjustment or marks the beginning of a more profound structural transformation. With over $3 trillion currently managed across roughly 8,000 single-family offices globally—projected to reach $5 trillion by 2030—the implications of sustained capital migration could significantly impact various sectors reliant upon family office funding.

For now, shifts remain relatively modest since family offices typically adopt extended time horizons spanning decades rather than reacting impulsively to short-term fluctuations. Citi Private Bank’s Richard Weintraub notes no wholesale exodus but acknowledges renewed interest in exploring European and Asian opportunities tactically. Non-U.S. investors appear most active in repositioning; between February 14 and March 14, European entities withdrew over $3 billion from U.S. equity ETFs while adding nearly $16 billion to European equivalents.

J.P. Morgan Private Bank's William Sinclair highlights robust returns experienced internationally during 2025, underscoring the necessity for true cross-border diversification. Emphasizing policy-related unpredictability, there is growing emphasis placed upon safeguarding portfolios via expanded asset classes outside traditional equities, incorporating core fixed income instruments and precious metals like gold. Consequently, Single-Family Offices demonstrate slight yet deliberate reallocations toward enhanced global dispersion strategies.

As family offices navigate uncertain times, their decisions carry substantial weight throughout financial ecosystems. Whether driven by immediate concerns or strategic foresight, these recalibrations signal an era where international diversification assumes heightened importance within sophisticated wealth management practices.