NON-CON­VEN­TIONAL AS­SETS

MillionaireAsia India - - Wealth Management -

Other than travel, two new ex­pe­ri­en­tial in­vest­ments are be­com­ing prom­i­nent.

1. Ghost­writ­ten books

Ul­tra-high net­worth in­di­vid­u­als might want a book writ­ten for them be­cause: • They have led a rare and rich life and they want the

sat­is­fac­tion of telling their sto­ries • They have cre­ated a pro­fes­sional con­cept that needs to reach out to the masses In ei­ther cases, a ghost­writ­ten book will boost their brand eq­uity and per­haps make them a cel­e­brated thought leader. Pro­fes­sional ghost­writ­ers can help them in this en­deav­our – they are not only skilled in writ­ing, they also prac­tise dis­cre­tion. There is a lot one can dis­cuss about this ex­pe­ri­ence, but that will have to await another day.

2. Phi­lan­thropy in­vest­ments

The most sub­lime form of pas­sion is com­pas­sion.

It is there­fore un­der­stand­able that for many UHNIs, the nal fron­tier is not that vast ex­ter­nal space lled with ex­cite­ment but a small in­ner space ca­pa­ble of gen­er­at­ing pur­pose and peace.

The ex­traor­di­nar­ily wealthy ex­pe­ri­ence their power ev­ery

sin­gle day. In the rev­er­ence they re­ceive, the qual­ity of ser­vice that’s be­stowed upon them and the co­coon the world al­lows them to oc­cupy. How­ever, a small mi­nor­ity amongst them want demon­strate their power by cre­at­ing so­cial im­pact. They cre­ate a non-prot or­gan­i­sa­tion, fo­cus on im­por­tant prob­lem ar­eas (like ed­u­ca­tion, health, women’s em­pow­er­ment, cul­ture and her­itage, mi­cro-nance, in­fra­struc­ture etc) and make a dif­fer­ence at the grass­roots.

Those with the taste for such a mis­sion nd a con­sul­tant that will help them iden­tify the right cause, the right part­ner NGOs and the man­ner in which money will be de­ployed. They end up ap­proach­ing this mis­sion with the same zeal they ex­hib­ited while build­ing an en­vi­able ca­reer. While it is pos­si­ble to cre­ate break even mod­els in this space – for in­stance, by op­er­at­ing a be­nign mi­cro-nance in­sti­tu­tion – the pri­mary ROI is in the form of novel ex­pe­ri­ences, good­will and a re­newed sense of pur­pose. As a re­sult, they also learn be­fore it’s too late that wealth with­out mean­ing is akin to health with­out joy.

Th­ese cho­sen few are those who, hav­ing lived a full life, now go about dis­cov­er­ing how to live a fuller life. Per­haps that’s the ul­ti­mate priv­i­lege of be­ing wealthy – the abil­ity to live a life with­out re­grets.

PROS

• The process of in­vest­ment it­self be­comes more fun and ex­cit­ing

Sound in­vest­ments in this space are not eroded by ination • They of­fer an op­por­tu­nity for di­versication where your port­fo­lio be­comes unique, reect­ing your per­son­al­ity, tastes and world­view In­vest­ments are less volatile – since in­dices such as stock mar­ket prices don’t cause daily uc­tu­a­tions • Some coun­tries of­fer cer­tain tax ex­emp­tions for some of the non

con­ven­tional as­set classes

CONS

Your suc­ces­sors might not be in­ter­ested in the same as­set classes as you. As a re­sult, they un­der­stand the signicance and value of your non-con­ven­tional as­sets port­fo­lio and you may have to iden­tify oth­ers who will own/man­age/en­joy/liq­ui­date th­ese as­sets Takes long for val­u­a­tion to in­crease – not suit­able for short-term gains Sec­ondary mar­kets usu­ally don’t ex­ist; you may be re­quired to scout for a buyer while liq­ui­dat­ing • Non-con­ven­tional as­set classes that de­liver high re­turns of­ten have com­men­su­rate risks as well Prices fetched dur­ing auc­tions might mis­lead in­vestors into think­ing that av­er­age gains are just as high

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