The study was conducted from January to the end of March. It involved 307 clients of the bank around the world, Reuters reports with reference to UBS. The average size of the families’ fortunes amounted to $2.7 bln.
According to UBS, about two-thirds of respondents expect a decline in confidence in the dollar over the next 12 months. Many families have revised their investment portfolios, while almost half of respondents considered their dependence on the U.S. currency excessive, said the bank’s strategist Maximilian Kunkel.
Against this backdrop, the largest private investors intend to increase investments in emerging market equities and infrastructure projects, gradually reducing the concentration of assets in the US.
“For the first time, we see the desire of the richest families to strengthen their positions in the Asia-Pacific region and to some extent in Western Europe,” said UBS Executive Director Benjamin Cavalli.
He said the trend is most visible among investors outside the U.S., but signs of dedollarization are beginning to emerge among U.S. owners of large fortunes as well.
One of the factors pushing investors to diversify assets remains the rapid growth of the U.S. debt load. As of the end of March, the U.S. government debt reached $31.27 trillion and for the first time since World War II exceeded the size of the country’s economy, while GDP over the past 12 months amounted to $31.22 trillion. The debt-to-GDP ratio approached the record level recorded in 1946.
Inflation is an additional concern for investors. In March, the PCE index, a key benchmark of the US Federal Reserve, rose to 3.5%, the highest level in almost three years.
