According to the "2023 Billionaire Ambition Report" recently released by global wealth management giant UBS, in the year ending April 6 this year, for the first time in nine years, the value of assets owned by new global billionaires who inherited their family assets was higher than that of new billionaires who started their own businesses. This is the first time that the report has been recorded. However, the report said that this kind of "fighting father" is better than starting from scratch will definitely not be the last time.
According to the UBS report, a generational "wealth shift" is poised as the older generation of wealthy people grows older. Over the next 20 years, it is expected that more than 1,000 billionaires will make a total of 52 trillion US dollars (about 38 trillion yuan) of wealth left to their heirs. More than 58 percent of the billionaires surveyed said getting their heirs ready was "one of the biggest challenges they faced."
Profits in the energy and defense sectors reached record highs.
The Asia-Pacific region leads the world in the number of new entrants.
On November 30, UBS released its 2023 Billionaire Ambition Report. The report said that in 2023, the global economy will begin to emerge from the haze caused by the epidemic, with strong production capacity in Asia restarting and consumption in places such as Europe recovering. Overall, the world's richest people have also reaped the rewards this year after experiencing a decline in wealth during the pandemic.
UBS Group (data map) According to ic photo
It is reported that UBS has compiled this series of reports since 2015, in which "billionaires" specifically refer to people with assets of at least $1 billion.
According to the report, in 2023, the total number of billionaires in the world increased by 7% year-on-year, from 2,376 to 2,544;Total wealth increased by 9% from last year, from $11 trillion to $12 trillion. The report notes that while billionaires from healthcare and internet technology have amassed the most wealth over the past decade, in the last year, some geopolitical tensions have continued to rise, and manufacturing billionaires have begun to reap the rewards, especially in the energy and defense sectors.
Regionally, the Asia-Pacific region has performed the brightest in the past year, with 85 new entrants from the Asia-Pacific region, more than the rest of the world. The report also shows that more than 50% of Asia-Pacific billionaires believe that the best investment opportunities in the world in the next 12 months will be in Asia, rather than in developed markets such as Europe and the United States.
The rich second generation "wants to go their own way."
Less than half of the sons inherit their father's business.
The UBS report analyzed the 137 new billionaires on the list in 2023, of which 53 "rich second generations" inherited a total of $150.8 billion in inheritance, surpassing the total assets of 84 "self-made" new billionaires ($140.7 billion).
Benjamin Cavalli, head of strategic accounts at UBS's global wealth management division, believes that this phenomenon will continue to emerge over the next 20 years, when "more than 1,000 billionaires will pass on about 5.5 to their children."$2 trillion in family assets".
Cavalli said that in the era of "wealth transfer", the biggest problem faced by billionaires is that the values and ways of doing things of the children generation are quite different from those of the older generation of billionaires, and the wealthy families should think about how to reconcile the life goals of the whole family to make the inheritance of wealth meaningful. "The next generation has their own views on business, investment, and philanthropy, and achieving a smooth succession requires founders and their families to do things differently and constantly discover common values and goals to find a way forward that reassures generations and allows them to continue to build wealth. Cavalli said.
Warren Buffett (second from left) and his children.
More than half of the "rich second generation" surveyed chose to leave their families and pursue careers that would allow them to better realize their ambitions and demonstrate their skills. Unlike the older generation of wealthy people, the children's generation is more focused on business goals such as clean energy and sustainable development, and more and more wealth heirs are becoming philanthropists, creating new environmentally friendly commercial enterprises, or transforming existing family businesses to focus on sustainability and philanthropy. In contrast, a whopping 68% of the "rich generation" respondents want their children to carry on the family business and carry forward the existing family brand.
The UBS report pointed out that in terms of financial management, the "rich second generation" is more aggressive and more adventurous. In the face of a turbulent and complex economic environment, the "rich generation" prefers to allocate treasury bonds and other products in developed countries, while the "rich second generation" does not like fixed income products, but generally favors riskier private equity, 59% of the heirs hope to launch private equity as investors to raise funds, and 55% of the heirs hope to increase investment in private equity**.
Amy, Chairman of UBS Global Wealth Management Asia, said that a reasonable and successful wealth succession plan first requires frequent exchanges of values and life feelings between generations within the family, and a consensus on wealth arrangements.
Red Star News reporter Zheng Zhi.
Editor: Guo Yu, Editor-in-charge: Li Binbin.
*Red Star News, Prizes for Reporting!）