From supporting its passion for the arts to helping manage family wealth, UBS is leveraging its comprehensive expertise to meet the changing expectations of a new generation of clients
Each generation has its own passions and aspirations. The next generation of ultra-high-net-worth individuals (UHNWIs), in particular, is driven by a desire to use its influence and wealth to make a positive impact on the world.
Whether it’s fighting climate change, tackling inequality or supporting the arts, UBS understands the importance of aligning wealth and passion with values. The UBS Global Family Office Report 2024 reveals that the next generation is increasingly interested in impact investing, and is also keen on sectors such as healthcare and clean technology.
“As the world’s leading wealth manager, UBS is well-positioned to meet the diverse needs of our clients. Beyond providing market insights and tailored investment advice to generate returns for their portfolios, we also understand our clients’ ever-evolving needs and passions including philanthropy, collecting art and building legacies,” says Jin Yee Young, Co-Head, UBS Global Wealth Management Asia Pacific, and Country Head, UBS Singapore.
Ensuring a smooth handover
Drawing from decades of working with multi-generational UHNWIs globally, UBS has gained valuable insights and experience to guide families in the region through the complexities of intergenerational wealth transfers.
With an estimated US$83.5 trillion of inherited wealth globally to be transferred in the next 20 to 25 years, according to the UBS Global Wealth Report 2024, the ability to ensure a smooth handover has become a priority for many of the world’s most affluent families.
UBS works closely with its clients to create family legacies for future generations. “Our dedicated team have been delivering solutions that provide our clients with insights, comprehensive advice and execution services, according to their family’s legacy planning needs,” says Young.
UBS also conducts programmes that are designed to prepare its next-generation clients to take on the reins of their family businesses and fortunes. In July, the bank hosted children of its UHNW clients at its office in Singapore for the UBS Leadership Excellence and Development Series Certification Program.
This exclusive education programme not only imparts foundational financial knowledge and business expertise, but also helps members of the next generation to find their roles in their family enterprises as future leaders and stewards of financial wealth.
Navigating the complexities of wealth
As the next generation prepares to inherit substantial wealth, many UHNW clients are turning to family offices to professionalise the management of their family’s wealth.
UBS helps family offices navigate an increasingly complex wealth landscape through exclusive events such as the UBS Singapore Family Wealth Forum held in June 2024. The event brought together nearly 300 attendees, including distinguished panel speakers and leading investment managers, to discuss cutting-edge investment strategies and industry best practices.
One investment strategy that is gaining traction among family offices is endowment-style investing. This approach, traditionally employed by non-profit organisations, offers enhanced risk-adjusted returns compared to traditional portfolios by diversifying investments across various alternative asset classes, including hedge funds, private equity, private debt and real estate. Endowment-style investing aligns with the goal of generating a recurring income for the family, preserving and growing capital while mitigating risks associated with market volatility.
“By incorporating endowment principles, family offices can effectively manage their assets, ensuring long-term sustainability and preserving wealth for future generations,” says Young.
With UBS’s global platform encompassing wealth management, investment banking and asset management, the bank is able to advise family offices on a range of opportunities related to managing family wealth.
Connecting through the arts
Beyond investment and wealth solutions, UBS’s robust support of the arts is another way it connects with its clients and the next generation. The bank has a longstanding tradition of supporting cultural initiatives globally, and leverages contemporary art to enrich lives. Central to this commitment is the UBS Art Collection, which stands as one of the most important corporate collections of contemporary art featuring over 30,000 works by artists from more than 70 regions.
Meanwhile, the bank’s sponsorship of leading art fairs in Asia, such as Art SG, Art Basel Hong Kong, Taipei Dangdai and West Bund Art & Design, provides a platform for clients to explore their passion for art, fostering dialogue and sparking opportunities. UBS is founding and lead partner for Art SG, which launched in 2023 as an international platform for artists, galleries and art lovers to gather. Art SG has become the largest international art fair to launch in Southeast Asia and this annual fair in January marks the start of the art calendar in the Asia-Pacific region.
“UBS believes contemporary art has the power to inspire people to reimagine a better future. The partnership between UBS and Art SG creates an impactful platform for people to connect through art, share ideas and bring opportunities to life,” says Young.
Through such partnerships, UBS is also advancing the global conversation about the art market; the bank co-publishes the Art Basel and UBS Global Art Market Report and A Survey of Global Collecting in 2023.
“As the world of wealth evolves, UBS will continue to adapt and innovate to meet the needs of our growing clientele,” says Young. “The bank’s focus on understanding the next generation’s passions and aspirations, coupled with its expertise in wealth management, makes it the ideal partner for families seeking to craft a legacy that lasts for generations to come.”
This story first appeared in the September 2023 issue. Purchase it as a print or digital copy, or consider subscribing to us here
