The world’s wealthiest investors are rethinking the foundations of portfolio strategy, shifting beyond traditional asset allocation towards a more complex model that spreads risk not just across markets, but across countries.

That is the central finding of new research from Global Citizen Solutions, which argues that “jurisdictional diversification” is fast becoming a structural feature of high-net-worth investing. In an era marked by geopolitical fragmentation and policy unpredictability, the report suggests that where assets are held may matter as much as what those assets are.

For decades, the 60/40 portfolio — balancing equities and bonds — has been the cornerstone of wealth management. But its logic has come under strain amid low interest rates and periods when both asset classes have fallen in tandem. Family offices have responded by increasing exposure to alternatives, which now account for roughly 42 to 44 per cent of portfolios, with private equity alone making up about a fifth.

Yet the report contends that asset diversification alone no longer provides sufficient protection. Sovereign risk — from capital controls to regulatory intervention — is emerging as a distinct and material threat to private wealth. Historical episodes such as Cyprus’ bank bail-in and Argentina’s currency restrictions serve as reminders that policy decisions can rapidly reshape financial outcomes.

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