UBS this week rolled out the Family Office Compass, a strategic toolkit to help ultra-high-net-worth families transfer wealth to the next generation.
The compass, which was developed in conjunction with the Cambridge Institute for Family Enterprise, shows families how to set up a state-of-the-art family office, and offers a perspective on a family office’s strategic role beyond traditional and short-term wealth management.
UBS said in a statement that the compass was designed to address one of the major findings of its Global Family Office Report 2016, namely, that 69% of family offices expect a generational transition within the next 15 years, yet only 37% of them believe the next generation wants to shoulder major responsiblity for managing their family’s affairs.
It ascribed the next generation’s reluctance to an inability to identify ways to participate that suit their personal interests and life trajectories, rather than to lack of interest or aptitude.
Many families find it challenging to place trust in potential successors, UBS said. As well, family offices can find it equally demanding to maintain relevance with the younger generation.
It said the compass can help overcome these potential obstacles so that generational transition succeeds and family wealth continues to grow multigenerationally.
“It is crucial for families wanting to create lasting financial success to identify their driving purpose and to formulate an overall family strategy,” John Mathews, head of private wealth management and ultra-high net worth at UBS Wealth Management Americas, said in a statement.