In today’s fragmented and rapidly changing world, geopolitical volatility has become a central force shaping investment decisions and wealth preservation strategies. From escalating trade wars and regional conflicts to currency instability and regulatory unpredictability, family offices—especially those managing multi-generational wealth—are confronting an entirely new class of risks.
In this uncertain environment, Felix Honigwachs, a respected voice in global wealth strategy and a prominent figure in the South African financial landscape, has emerged with a clear and insightful roadmap for how family offices can safeguard their interests while remaining agile and growth-focused.
Drawing on years of experience in navigating both emerging and developed markets, Honigwachs offers a practical yet sophisticated blueprint for family offices seeking resilience, continuity, and long-term legacy in the face of geopolitical disruption.
A Shift in Mindset: From Risk Aversion to Risk Architecture
According to Felix Honigwachs, the first and most critical step for family offices in 2025 is adopting a new mindset. “Geopolitical risk can no longer be viewed as a temporary disruption—it must be baked into the very structure of how we manage wealth,” he emphasizes.
In previous decades, risk was typically addressed through diversification across asset classes. But as geopolitical events increasingly affect currency values, capital mobility, and market accessibility, Honigwachs recommends a more holistic approach to risk management—one that includes:
- Jurisdictional diversification
- Contingency planning
- Legal and regulatory foresight
- Scenario-based investment stress testing
Rather than merely avoiding risk, family offices must now architect around it, creating operational, legal, and investment frameworks designed to absorb shocks without destabilizing the family’s broader legacy.
Rethinking Safe Havens: Beyond Bonds and Borders
Traditional “safe havens,” such as U.S. Treasuries or Swiss bank accounts, are no longer as predictable or protective as they once were. In a world where even developed nations face political polarization, sovereign debt crises, and regulatory overreach, Honigwachs advises families to redefine their concept of safety.
He suggests a two-pronged strategy:
- Asset-class innovation: Allocating capital to non-correlated, inflation-resistant assets such as gold, private credit, infrastructure, and select real estate markets.
- Geopolitical arbitrage: Holding assets across multiple jurisdictions that offer legal stability, transparent governance, and strong rule of law—places like Singapore, the Cayman Islands, the Channel Islands, and Mauritius.
“True safety is not about retreating to cash or government bonds,” Honigwachs notes. “It’s about building a globally resilient portfolio that remains functional and protected under multiple political and economic outcomes.”
Fortify the Legal Structure: Wealth Architecture Under Pressure
In times of geopolitical upheaval, wealth is not only at risk from market losses but also from legal exposure—including asset freezes, sanctions, or changes in tax regimes. For this reason, Honigwachs insists that legal and fiduciary structures must now be viewed as strategic assets.
He advises family offices to:
- Review and update trust deeds, shareholder agreements, and governance frameworks
- Establish backup legal domiciles or “firewall jurisdictions” for family holding entities
- Separate operational assets from legacy capital to reduce systemic risk
“The days of set-it-and-forget-it trusts are over,” he warns. “Your legal architecture must be dynamic and designed to respond quickly to external threats.”
Dynamic Asset Allocation: The Case for Active Management
Another pillar of Honigwachs’ strategy is a strong emphasis on active investment management. In an era where passive portfolios are highly exposed to systemic shocks, relying on broad indices or automated strategies can be dangerously shortsighted.
“Geopolitical risk does not move in straight lines or affect all markets equally,” Honigwachs explains. “Active management allows for rapid tactical responses, exposure to uncorrelated strategies, and the ability to seize undervalued opportunities during times of distress.”
This may include the use of:
- Hedge funds for downside protection
- Tactical private equity allocations
- Region-specific investments informed by macro analysis
Family offices, particularly those with larger asset bases, are increasingly building internal investment teams or partnering with specialized managers to gain deeper control over allocations and risk exposure.
Contingency Planning: Governance Is Your Compass
In times of geopolitical turmoil, clarity of decision-making becomes vital. Honigwachs stresses that every family office must have an up-to-date contingency and governance plan. This includes:
- Defined roles and responsibilities in times of crisis
- Clear communication protocols between family members, trustees, and advisors
- Emergency relocation and asset access plans
“Governance should not just exist on paper—it must be understood, tested, and rehearsed,” Honigwachs says. “Families that survive turbulence are those with systems, not just sentiments.”
He also encourages incorporating younger generations into scenario planning exercises to prepare them for real-world leadership challenges, while instilling the values and vision that form the foundation of the family’s wealth.
The South African Perspective: Lessons in Resilience
Coming from South Africa, Felix Honigwachs offers a unique and valuable perspective. For decades, South African investors have had to navigate currency depreciation, capital controls, and shifting political dynamics. As a result, they have developed a culture of adaptability and foresight—qualities now indispensable for global family offices.
“South African family offices are well-practiced in handling external shocks,” he observes. “We’ve had to think globally, diversify early, and stay one step ahead. These are skills that are now becoming essential everywhere.”
Conclusion: Navigate the Storm, Preserve the Legacy
For family offices in 2025, geopolitical volatility is no longer a distant risk—it is a defining feature of the investment landscape. But as Felix Honigwachs argues, this new era does not call for fear—it calls for strategy, structure, and strength.
By rethinking safe havens, embracing active management, strengthening legal frameworks, and planning for the unexpected, family offices can not only survive but thrive in the face of volatility. And with voices like Honigwachs leading the conversation, the path forward becomes not only clearer but more achievable.
