Tuesday 11, July 2017 by William Mullally

UBS launches white paper on millenial wealth


UBS Wealth Management's Chief Investment Office has launched a white paper on millennial wealth. The paper concludes automation and connectivity will further shape millennials' wealth management tastes and how advisers service clients.

As technology diffuses, millennials and their advisers look set to lead a wider movement beyond 'financial supermarkets' and towards broader, more personalised online wealth platforms. This socially connected era will favour online networks that can help advisers source global opportunities for clients, including generating social as well as financial returns on their capital.

According to a global UBS survey in October 2016, 43 per cent of millennials see their technology skills as a positive future influence on their financial security, ranking fourth out of 16 factors. By contrast, only 36 per cent said the same about their country's job market. Overall knowledge ranked first, with 61 per cent seeing their level of education as a plus, indicating the high value of digital information to advisers and their millennial clients.

Mark Haefele, Global Chief Investment Officer (CIO) at UBS Wealth Management, said, "In a more socially connected age, wealthy millennials and other private clients have expressed growing interest in innovations like digital platforms and sustainable and impact investing. This gives wealth managers and financial advisers a renewed opportunity to improve their digital capabilities as well as using private capital to help make the world a more sustainable place."

Simon Smiles, CIO for Ultra High Net Worth at UBS Wealth Management and a WEF Young Global Leader, said, "Our wealthiest millennial clients are at the forefront of the trend towards digital networking and mobilising investments for public good. To meet related needs, wealth managers and financial advisers must prioritise new digital services like financial networks and help mainstream impact investing and other sustainability-related initiatives."

Ali Janoudi, Head of Wealth Management Central and Eastern Europe, Middle East and Africa, France and Belgium International at UBS, said, "Our research shows that millennials in the Middle East are hard-working, entrepreneurial, and place a premium on social networking. In our survey of UAE millennials last year, 52 per cent of respondents said they never expected to retire, compared with less than 23 per cent globally, while 91 per cent had already started their own business or considered themselves likely to in the near future. They also considered building social connections and social networks to be the most important form of wealth. UBS continues to see significant potential for wealth creation among Middle Eastern millennials and will further develop networking as a key aspect of our wealth management offering."




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