Advisors to ultra-high-net-worth individuals can boost value for their clients in 2018 by paying attention to how billionaires’ attitudes toward wealth and investing are changing, Tom Holly, who leads PwC’s Asset & Wealth Management practice, tells The Wall Street Journal.
Advisors to UHNW Clients Should Focus on Tech, Law Changes, Sports and Art
Advisors to UHNW clients should be aware of the expected exchange of wealth—an estimated $1.3 trillion over the next two decades—from the aging population to their heirs or charitable organisations, Holly says. Legacy and contingency plans should be reviewed, and advisors need to watch for regulatory or tax law changes that may affect these, he tells the Wall Street Journal.
The new generation of UHNW individuals will be more focused on technology than their parents, and will want greater access to data and tools such as predictive analytics, according to Holly. Advisors should prepare for this by ensuring that their digital strategies are appropriate, and if not, seeing who can develop that area of their practice to meet the expectations of these new investors, he tells the publication.
Billionaires are becoming more involved in the arts and sports: They now own two-thirds of professional football and basketball teams in the U.S, and there has been a jump in the number or private art galleries, Holly says. These UHNW clients see sport and art not as an investment or hobby, but as a way to impact their communities, he says. Building a stadium and developing the surrounding area, for example, can rejuvenate a neighborhood, benefiting local businesses as well as creating new jobs, according to Holly. An advisor should connect clients with like-minded people who can help them realize these interests, he tells the Wall Street Journal.
Networking has to be driven by a specific issue, which helps clients connect with the resources they need, Holly says. If a client has an interest in fine art, for example, they need to network with people who can give guidance and support on creating an endowment or lending their pieces to galleries and museums, he tells the publication.
