Mil­len­ni­als: Global guardians of cap­i­tal

Why they’re poised to have an out­sized im­pact on the global econ­omy and our col­lec­tive fu­ture

Woonsocket Call - - Business/local - Chris Bouley is vice pres­i­dent of wealth man­age­ment at UBS Fi­nan­cial Ser­vices, 500 Ex­change St., Suite 1210, Prov­i­dence, RI 02903. He can be reached at 401-4556716 or via email at christo­pher.bouley@ubs.com.

By 2020, to­tal global mil­len­nial wealth could stand at $24 tril­lion – around one-and-a-half times the size of the United States’ na­tional out­put in 2015.

Mil­len­ni­als, de­fined as those born be­tween 1982 and 1998, are set to ben­e­fit from the big­gest wealth trans­fer ever seen.

UBS CIO Wealth Man­age­ment (CIO WM) ob­serve that Mil­len­ni­als share some par­tic­u­lar traits that are dif­fer­ent from other gen­er­a­tions – they fa­vor con­ve­nience, multi-chan­nel com­mu­ni­ca­tion, and trans­parency from busi­nesses.

It’s im­por­tant not to over­gen­er­al­ize about mil­len­nial be­hav­iors, which risks alien­at­ing this di­verse group and over­look­ing wider trends that will af­fect ev­ery­one.

Mov­ing for­ward, it is crit­i­cal that com­pa­nies, gov­ern­ments and non-gov­ern­men­tal or­ga­ni­za­tions adapt to the needs of these new guardians of cap­i­tal.

Talk to your UBS fi­nan­cial ad­viser about how you can best po­si­tion your port­fo­lio to take ad­van­tage of these evolv­ing global trends and shifts in the in­vest­ment land­scape.

Mil­len­ni­als are de­fined as those who came of age at the turn of the 21st cen­tury (born be­tween 1982 and 1998), and, by 2020, their global col­lec­tive wealth is ex­pected to stand at $24 tril­lion – or around 1.5 times our coun­try’s na­tional out­put in 2015. They’re also ex­pected to ben­e­fit from one of the largest in­ter­gen­er­a­tional wealth trans­fers in his­tory. In fact, the 2016 Bil­lion­aires re­port from UBS and PwC es­ti­mates that 460 bil­lion­aires over the next two decades are ex­pected to hand over $2.1 tril­lion to mil­len­ni­als – a sum equal to In­dia’s en­tire 2015 GDP.

Given this mas­sive ac­cu­mu­la­tion of cap­i­tal, it’s crit­i­cal that busi­nesses, gov­ern­ments, non-govern­ment or­ga­ni­za­tions (NGOs) and in­vestors rec­og­nize this grow­ing shift in how mil­len­ni­als are shap­ing the fu­ture through how they buy and live – and to be po­si­tioned to cap­ture po­ten­tial op­por­tu­ni­ties.

Mil­len­ni­als dif­fer from other gen­er­a­tions in that they fa­vor con­ve­nience, multi-chan­nel com­mu­ni­ca­tion and trans­parency from busi­nesses (and wealth man­agers). And the as­sump­tions that mil­len­ni­als are ob­sessed with tech­nol­ogy and with them­selves are not con­sis­tent with the facts. All age co­horts are in­creas­ingly re­liant on tech­nol­ogy, and mil­len­ni­als’ will­ing­ness to tackle global is­sues will drive broader shifts in de­mand across age groups, com­pelling busi­nesses and stake­hold­ers to re­spond with new in­no­va­tive op­er­at­ing modes.

Clients and cus­tomers will in­creas­ingly de­mand en­hanced tech­no­log­i­cal so­lu­tions. UBS CIO Wealth Man­age­ment (CIO WM) rec­om­mends that busi­nesses, in­clud­ing wealth man­agers, ac­cel­er­ate ef­forts to com­ple­ment tra­di­tional op­er­at­ing mod­els with con­ve­nient dig­i­tal ca­pa­bil­i­ties and om­nichan­nel con­tent de­liv­ery that en­ables a choice of tra­di­tional, dig­i­tal or hy­brid of­fer­ings. And cor­po­ra­tions, gov­ern­ments and NGOs will pro­gres­sively drive in­no­va­tion and de­velop so­lu­tions that meet this de­mand and mar­shal cap­i­tal (both fi­nan­cial and hu­man) into the most pur­pose­ful projects.

For more on this grow­ing trend and the op­por­tu­ni­ties that lie ahead, ex­plore the full re­port and de­tailed find­ings.

Are your in­vest­ments poised to take ad­van­tage of up­com­ing global eco­nomic shifts? Con­nect with your UBS fi­nan­cial ad­viser or find one.

Chris Bouley Vice Pres­i­dent- Wealth Man­age­ment UBS Fi­nan­cial Ser­vices

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