Working at UBS which provides private wealth management to high net worth people and then also the ultra high net worth, I get asked a great deal about the wealthy. Are they nice? Are they mean? Do they have good family relationships? How do they treat their spouse? How do they spend their money? Did they inherit their money? How did they make it?
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| Jacoline Loewen at The Business Transitions Forum |
When I read
this article on the wealthy from John Mathews, head of UBS private wealth, it covered many of the insights that are well worth noting. I thought I would share an excerpt of it.
"Whenever we meet our clients we are struck by how normal they are. Yes they are usually intensely focused, bright and passionate, particularly when it comes to their business. But they are also often quiet, thoughtful and preoccupied as much by the responsibilities of great wealth as by its benefits."
"That sense of the 'burden of wealth' is having some interesting effects. The new generation of billionaires in particular is motivated not only by wealth creation but a broader sense of purpose. This means even more commitment to improving living standards, job creation, and providing broader access to cultural capital. As governments around the world cut back on spending, there is a growing feeling that the private sector must play a bigger role. "
Below is a brief list of the different activities and you can read the full report
here.
1. Arts and culture
Billionaires are creating alternative legacies through their cultural pursuits. Private museums are growing in number and public museums are receiving more funding, increasing the accessibility of art to the public. Maja Oeri, a Swiss pharmaceuticals heiress, illustrated the trend when she donated a large proportion of the funds for the 2016 extension of the Kunstmuseum Basel, the city's municipal art collection. Similar initiatives have proven to be equally successful: US museums like the MoMA in New York and SFMOMA thrive on support from billionaires.
2. Sports
The ultrawealthy are also helping sports clubs to become more sustainable, helping them to deliver associated benefits to the communities of which they are a part. For example, Jack Ma's Alibaba has invested in Evergrande Taobao FC, recruiting international players and coaches, building one of the world's biggest football schools, dominating the league and becoming the first Chinese winners of the Asian Champions League in 2013.
3. Philanthropy
Networks and communities are playing an increasingly important part in enabling this sort of purpose-driven activity. A prominent example is The Giving Pledge. At the end of May 2017, 160 signatories, including some of the world's wealthiest individuals and families, had committed more than half their wealth to philanthropy.
4. Impact investing
Impact investing is also growing fast. The Rise Fund, for example, aims to balance competitive financial returns with positive societal outcomes. Its Founders Board includes billionaire entrepreneurs, rock stars, royalty.
5. Family
Looking ahead, the global impact of billionaire wealth is set to grow even further, with an estimated USD2.4 trillion of billionaire wealth expected to be transferred in the next two decades.
