As global markets grapple with rising geopolitical instability, ultra-high net worth families are increasingly questioning not only the allocation of their assets but the underlying values those assets represent. Kimberly Evans, co-head of US client advisory at AlTi Tiedemann Global, an $82 billion multi-family office, observes a marked shift in client conversations over the past few years.
“The heightened geopolitical tensions in the landscape are leading to focused discussions among our ultra-high net worth families not only about the composition of their investment portfolios — positioning, diversification, sources of income and growth — but also about the purpose their assets are ultimately serving,” Evans told InvestmentNews. Clients are now seeking to ensure their wealth plans reflect their wishes regarding asset disposition, with increased attention to current philanthropy and aligning investments with personal values.
For families with cross-border holdings, the dialogue has expanded beyond conventional risk management. Geographic diversification has long been a standard tool for portfolio construction at this level, but Evans notes a change in client sentiment. “Most of our US-based clients recognize geographic diversification in their investment portfolios as a risk mitigation tool and as a way to gain differentiated opportunities for growth,” she says. “However, over the last few years, some clients have expressed hesitation in investing in certain jurisdictions due to misalignment of shared values. Situations such as the war in Ukraine and reports of human rights violations in other regions have led to discussions on re-aligning portfolios.”
Philanthropy has become inseparable from portfolio strategy. Evans explains that clients want to avoid portfolio exposure to certain sectors while simultaneously directing charitable dollars toward causes they wish to support. This dual approach reflects a broader desire to ensure that capital is working in concert with personal convictions.
A notable trend is the increasing involvement of younger generations in family wealth discussions. Evans describes an “encouraging” dynamic where older family members actively include younger relatives in conversations about investment portfolios and legacy planning. “Parents want to hear what their kids have to say, often because they were not given the same opportunity by their own parents,” she says. This collaborative approach helps prepare the next generation for future decision-making, though it can also introduce friction when younger members hold different views on industries or geographies.
To navigate these tensions, Evans encourages families to focus on the “why” behind their investment preferences. “As an advisor, I encourage families to talk about the ‘why’,” she says. “What are the reasons behind the desire to eliminate certain industries or geographies from the portfolio? These meaningful discussions about perspective often lead to compromise and shared learning.” Practical questions such as whether to fully eliminate or merely reduce exposure to certain themes, and exploring new investment areas, help ground the conversation in actionable steps.
Evans emphasizes the importance of data in resolving conflicts. By modeling the impact of proposed changes on portfolio risk and return, advisors can help families reach consensus. “Defining purpose across family portfolios helps everyone focus on the long-term ‘why’,” she says. “If all decisions are seen in the broader context of what the family is ultimately looking to achieve, it makes shorter-term decisions or potential market-timing decisions much less relevant.” She points to evidence that market timing around exogenous events like COVID-19 or the war in Ukraine is notoriously difficult, reinforcing the value of staying invested for the long term.
For advisors seeking to build a practice around purpose-driven investing, Evans recommends starting with candid, in-person conversations that span generations. “Ask family members to talk about how they came to their beliefs and what changes they want to consider across portfolios,” she advises. By anchoring discussions in long-term goals and shared values, advisors can help families navigate geopolitical uncertainty while maintaining portfolio discipline.
