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  • Family Offices Pivot towards AI and Diversification amid Geopolitical Uncertainty: UBS Report

    Family Offices Pivot towards AI and Diversification amid Geopolitical Uncertainty: UBS Report

    Global financial markets are experiencing profound shifts due to geopolitical and structural uncertainties, leading family offices globally to reconsider their investment strategies. This emerges from UBS’s “Global Family Office Report 2026”, which surveyed 307 family offices across over 30 markets, together representing around $2.7 billion in net worth.

    Significantly, this is the first time since the start of the study that 60% of participants expressed their intention to modify their strategic asset allocation in the coming year. The focus is shifting towards a broader diversification spanning regions, currencies, and asset types, coupled with an enhanced emphasis on long-term thematic investments.

    A Growing Interest in Artificial Intelligence

    The report reveals an increasing trend amongst family offices to adjust their portfolios in a calculated, disciplined manner, as explained by Benjamin Cavalli, Head of Strategic Clients & Global Connectivity at UBS Global Wealth Management. Several investors are diminishing their U.S. dollar exposure or diversifying more widely across regions, without fundamentally reevaluating their North American positions.

    Artificial Intelligence (AI) is an area that continues to pique significant interest. As per the report, 65% of family offices have invested across the full AI value chain, starting from data centers and software platforms to semiconductor manufacturers. Despite high valuations, a considerable number of investors intend to increase or at least maintain their exposure.

    “Artificial Intelligence continues to be the defining investment theme of this decade,” stated Yves-Alain Sommerhalder, Head of GWM Solutions at UBS. Family offices are taking a more discerning approach, merging growth opportunities with a heightened risk discipline.

    Challenges in Governance and Succession Planning

    Besides AI, investments in infrastructure and energy and commodities remain the preferred areas for family offices. Cryptocurrencies, however, remain a fringe allocation, with only 44% of invested family offices considering digital assets as part of their strategic asset allocation, but actual portfolio exposures are typically limited.

    For Swiss family offices, the trend appears to be more conservative. They maintain widely diversified portfolios with a strong emphasis on Western Europe and North America, and they are making portfolio adjustments more cautiously compared to international peers. AI, energy, automation, and robotics also dominate amongst Swiss investors.

    Despite these trends, there are noticeable gaps in governance and succession planning in many family offices. Only about one-third have a clearly defined succession plan, and a mere 27% are preparing the next generation in a structured manner for future leadership roles.

    Questions & Answers

    What’s the trend in asset allocation among family offices?
    A majority of family offices are planning to adjust their strategic asset allocation in the next year, with emphasis on wider diversification across regions, currencies, and asset classes.

    What’s the investment sentiment towards artificial intelligence?
    Artificial Intelligence continues to be of high interest, with 65% of family offices having invested across the full AI value chain. Many plan to increase or maintain their AI exposure despite high valuations.

    What are the challenges being faced by family offices?
    A significant number of family offices lack clearly defined succession plans and structured methods for preparing the next generation for future leadership roles.

  • Lanvin Takes Strides Towards Stability in Q2 Despite Falling Sales: The Power of Restructuring Examined

    Lanvin Takes Strides Towards Stability in Q2 Despite Falling Sales: The Power of Restructuring Examined

    In the words of Zhen Huang, Chairman, Lanvin experienced a steadier second half following a tumultuous year where restructuring efforts started to show promise. Sales for the brand itself, however, observed a downturn of nearly a third.

    The Current Economic Climate and Restructuring Efforts

    Huang explained that despite the tough macroeconomic environment, the company continued to simplify its operations and bolster the long-term position of its brands.

    The luxury conglomerate, a parent to brands like Lanvin, Wolford, Sergio Rossi, and St John, clocked in a full-year revenue of US$281 million, witnessing an 18% dip compared to the previous year.

    This decrease in revenue mirrored a weakened demand in key markets, including EMEA and Greater China. This was also a result of ongoing plans such as shutting down stores and undertaking renovations.

    The gross profit stood at $164 million, yielding a margin of 58%. Meanwhile, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss slightly reduced to $105.5 million.

    Performance of Individual Brands

    Among all the brands under the group’s umbrella, Lanvin saw the most significant decline with a 30% drop in revenue, which amounted to $68 million.

    Wolford followed suite with a 14% dip in revenue, amounting to $89.1 million. However, the company noticed an uptick in performance in the second half of the year, backed by a robust product inventory and a 19% surge in wholesale revenue.

    Sergio Rossi also experienced a decline in revenue by 30%, bringing it down to $35.2 million.

    Contrarily, St John demonstrated resilience as its revenue experienced a minor 1% drop, amounting to $91.5 million. The brand saw growth in the North American region and an increase in wholesale and e-commerce sales.

    Huang expressed optimism regarding the upward momentum observed in the second half of the year and remained hopeful about the group’s ability to yield sustainable growth over time.

    Questions & Answers

    What was the full-year revenue of the luxury group?
    The group reported a full-year revenue of US$281 million.

    Which brand under the group’s umbrella recorded the sharpest decline in revenue?
    Lanvin recorded the sharpest decline in revenue with a 30% fall.

    Which brand proved to be more resilient and saw growth?
    St John demonstrated resilience by maintaining its revenue with only a 1% drop and experiencing growth in North America with stronger wholesale and e-commerce sales.