Ultra Wealthy Predict Rise in Philanthropy

Wealth creation may be slowing but the world’s mega rich are planning to grow their philanthropy and be more strategic about giving, according to a new wealth report.

Global property network, Knight Frank, released its 10th anniversary global Wealth Report that looks at the attitudes of the ultra wealthy according to their advisers.

Although protecting their wealth is a preoccupation for many ultra high net worth individuals (UHNWI), giving much of it away is also important, the survey found.

On average, 67 per cent of those who took part in the Attitudes Survey said their clients’ philanthropic activities had increased over the past 10 years, with almost 80 per cent saying activity would increase further over the next 10 years.

“A sense of personal fulfilment was cited as the main motivator, although in the Middle East religious beliefs were considered almost as important. However, the way the wealthy are giving is changing,” the report said.

Head of Philanthropy Services (UK) at UBS, Tom Hall, said that this was indicative of a wider trend that they had seen across their client base.

“Not only is philanthropy increasing, so too is the desire to ensure that it is truly effective and actually solving the social and environmental problems of our time,” Hall said.

“Philanthropists are becoming increasingly sophisticated in how they structure their giving and investing, with social impact emerging as a key third dimension along with risk and return in every investment decision.”

This year’s survey, conducted in conjunction with ultra-wealth intelligence consultancy Wealth-X, is based on the views of around 400 of the world’s leading private bankers and wealth advisors who, between them, manage assets for about 45,000 UHNWIs with a combined wealth of over half a trillion US dollars.

The survey covered a wide range of topics from investment decisions to succession planning.  

“Growth is slowing and the wealthy are under increased scrutiny, yet significant opportunities remain for those who truly understand how to identify, understand and serve this group,” the report said.

When advisers were asked if their clients’ wealth had increased at a faster rate over the past 10 years than it would do over the next 10, two-thirds agreed.

“In Australasia, 84 per cent  of respondents predicted a slowdown – unsurprising perhaps as much of the wealth creation in the region has been powered by China’s economic growth, which is now slowing,” the report said.

“Globally, succession and inheritance issues, wealth taxes and the global economy were identified as the three main factors threatening wealth creation over both the past 10 years and the next decade.”