Money talks as the world’s wealthiest families got richer in 2016

UBS, by the way, managed $870 billion of ultra-high-net-worth wealth in the first half of this year.

UBS, in partnership with Campden Wealth Research, presented its annual report on family offices across the world.

North American chief executives continued to set the pace with the average CEO paid $411,000 versus $344,000 in Europe and $314,000 in emerging markets.

Succession planning and wealth transfer climbed to become the single biggest budget item on family office’s professional service shopping lists past year.

‘This increase in investment towards succession planning matches the sentiment expressed by family offices past year, as their number one ranked priority was to focus on planning for the transition of the next generation of wealth holders, ‘ said the researchers.

Gains were most impressive among North American firms, which less real-estate exposure that their peers outside the region.

“We’ve seen growing interest in overseas investments from China’s family offices”, Mattoli said at the Hong Kong release of the Global Family Office Report 2017.

With investors moving out of fixed-income and hedge funds, “those dollars have flowed into private equity, operating companies and cashflow-producing assets such real estate”, he said.

Of those included in the study, 44% of family offices were run by a family member collecting an average pay of $367,000 – a 10% bump on 2015 – and an average bonus of 45% their base salary.

In terms of sectors, Asia Pacific family offices preferred investments in the healthcare, education, consumer and tech sectors, primarily in the USA and Asia, with China playing an important role.

According to the report, family offices in Hong Kong and China have an exceptionally high allocation in real estate compared to other regions. They more often tend to be chief operations officers and chief financial officers.

With a reading of 6.7 percent, APAC family offices in 2016 recorded the second-strongest performance compared to other regions with portfolios favoring private equity and equities.

In total, 74% of families with an average fortune of $1.45bn reported an increase of their wealth in 2016, with a further 22% showing no change to their fortunes and a mere 4% posting a decline. Sixty-eight per cent of respondents manage money for a single family.

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