The world’s 187 500 ultra-high-net-worth individuals (UHNWIs) – who collectively command net assets to the value of US$66 trillion; more than the value of all global entities - plan to increase their contribution to philanthropy in 2016. Also of increasing concern for those with assets in excess of US$30 million is how to successfully transfer their wealth to future generations.
These and other data-driven insights into the world and concerns of the very wealthy appear in the 2016 Wealth Report, published by Knight Frank, Standard Bank Wealth and Investment’s global consulting partner.
According to the report, high-net-worth-individuals (HNWIs) are especially concerned with how their children will deal with the pressures of inherited wealth. They are particularly worried that their offspring might not be inspired to build their own wealth, or know what to do with the investments and assets they inherit. This is especially so since intergenerational preservation of wealth requires setting aside wealth for long-term diversification, rather than immediate re-investment in new projects.
Leaving a legacy for broader society, beyond the family or immediate business, is also a concern for HNWIs, especially African entrepreneurs who made their money in the digital age.
Of course, this ‘desire’ requires expert financial guidance.
At Standard Bank Wealth Investment, their Wealth Quotient – used to structure wealth conversations with HNW clients – deals with such concerns. The four quadrants of the Wealth Quotient contextualise how UHNWIs make, grow, spend, preserve and pass on their wealth to future generations. The Bank also regularly conducts Future Leadership Academies in London and South Africa, providing a platform to interact with and understand HNWIs while equipping them with the wealth management tools and global access to meet the challenges of the global market.
The insights revealed in the Knight Frank Wealth Report 2016 reflect the concerns of many HNWIs in Africa where, increasingly, we observe that wealth is accompanied by a huge desire, reflected in many philanthropic projects and plans, to drive more inclusive growth to improve the lives of all.