Elizabeth Holmes will recover

Billionaires in the fast lane

According to a report by UBS and PwC, the number of billionaires has grown faster than that of their male counterparts.

The report "The changing faces of billionaires" published jointly by UBS and PwC shows that more and more women are building up lasting wealth and describes how wealth is most successfully passed on over several generations.

According to the report, the number of female billionaires is currently growing faster than the number of their male counterparts. Women have higher average wealth than men and are gaining influence at the family business level, as well as in the areas of philanthropy and governance. The report also highlights how fleeting wealth can be, as only 126 billionaires, or 44% of those who belonged to this category in 1995, still have at least ten-figure wealth today. The report also describes the strategies that successful billionaires have used to build and maintain a lasting legacy.

Lots of billionaires from Asia
More and more women have assets in the billions. The number of women billionaires increased by a factor of 6.6, compared to 5.2 times for men. Billionaires from Asia seem to be primarily responsible for this rapid increase. In Asia today there are 8.3 times more very wealthy women. Their number has skyrocketed from 3 to 25 in the last ten years. In Europe the growth factor was only 2.7 (from 21 to 57) and in the USA it was 1.7 (from 37 to 63).

Almost a fifth of billionaires worldwide come from Asia. As a rule, they are younger than their counterparts in other parts of the world. In Europe and the US, on the other hand, there are mostly billionaires who have inherited their fortunes (93% in Europe, 81% in the US); however, they also have more influence within their families than previous generations.

The volatility of large fortunes
The report also shows that large assets are very volatile. More than half of the billionaires from 1995 no longer belong to this category. The remaining billionaires were able to increase their wealth significantly. Two-thirds of the fortunes that remain today were created in the consumer goods, retail, technology, and financial services industries. The technology sector has the most staunch billionaires, while wealth is less permanent in sectors such as industrial, real estate and healthcare.

In 1995, the report covered 289 billionaires. From this group only 126 remain today. The others have been removed from the list as a result of their death, the dissolution of their families or the collapse of their companies. Since then, however, 1221 new fortunes in the ten-digit range have been created, so that the world had a total of 1347 billionaires in 2014.
The remaining 126 billionaires managed to create $ 1 trillion in wealth; H. around 21% of the wealth that all billionaires produced during this period. By 2014, the average wealth of billionaires who have been asserting themselves since 1995 rose from 2.9 billion to 11 billion dollars, i.e. by a factor of 3.8, while global GDP only grew by a factor of 2.5. UBS's analyzes consistently reveal three personality traits that are essential for the business success of both sexes. Successful billionaires take well-considered risks, focus "obsessively" on the business and are characterized by very great perseverance.

Preserving wealth over generations
The investigation has shown that most of the assets could be transferred over several generations because the heirs carried on the original company in whole or in part. It often depends on the industry to what extent the descendants keep the original company. Billionaires who got rich in the consumer goods and retail sectors do best when they can keep control of the original business and add value to it.

Billionaires in the financial sector achieve the greatest success with a combination of staying with the original company and a hybrid strategy.

Two thirds of billionaires are over 60 and face the crucial question of wealth transfer. More than three quarters of current billionaires have two or more children. In order not to dilute their wealth in the coming generations, they need a clear strategy that guarantees the continuation of the legacy.

The billionaires' legacy also needs to be protected from external forces. The negative attitudes of politicians towards wealthy people, rising taxes and ever stricter global regulations are, in the opinion of the billionaires, a greater threat to their wealth than a possible economic crisis. This underlines the importance of competent tax and legal advice in order to master these challenges.

Swiss fund market is growing slightly

May 20, 2021, 11:23 am

The assets of the investment funds included in the statistics from Swiss Fund Data and Morningstar increased by 0.6% in April compared to the previous month. The net inflow of funds amounted to CHF 5.3 billion. Most new money ...

read article

UBS launches sustainable mortgage

May 19, 2021, 12:18 pm

UBS Atrium is the first Swiss real estate platform to offer borrowers with a recognized sustainability certificate a discount when taking out a "Green Mortgage".

read article

More than 100 billion euros in ETF inflows

May 19, 2021, 11:29 am

Investor optimism remained unbroken in April with global ETF inflows of 104 billion euros, but according to Amundi's statistics it has weakened somewhat compared to the previous month. Shares were still ...

read article

Bellevue Group expects higher half-year profit

May 19, 2021, 10:51 am

The Bellevue Group expects a significant increase in the half-year consolidated profit to over CHF 20 million. The average client assets under management are expected to increase by around 30% compared to the first ...

read article

The image of the Swiss banking industry is high

May 18, 2021, 4:49 pm

The attitude of the Swiss population to the local banks is more positive than ever in the last 20 years. SME loan program, sustainability and trust in financial institutions contribute positively to their ...

read article

Finma facilitates online identification when opening an account

May 17, 2021, 1:54 pm

Finma is adapting the due diligence requirements when entering into business relationships via digital channels to reflect ongoing technological developments. Allowed as a security measure for online identification ...

read article

Temenos cooperates with Taurus

May 17, 2021, 12:05 pm

The banking software manufacturer Temenos has entered into a partnership with the Swiss fintech Taurus. With the platform, Temenos customers should seamlessly convert all forms of digital assets into crypto currencies, ...

read article

Swiss Life reaches an agreement with US judicial authorities

May 14th, 2021, 6:17 pm

Swiss Life has reached an agreement with the US Department of Justice regarding its former cross-border business with US customers and pays a fine of USD 77 million.

read article

Swiss GDP forecast revised upwards significantly

May 13, 2021, 5:00 a.m.

Thanks to easing and the Covid-19 vaccination program, the Swiss economy is recovering faster than previously expected. BAK Economics assumes that the pre-crisis level will be reached again this summer and that the ...

read article

Pension fund performance remains on track in April

May 12, 2021, 9:47 am

The pension funds in the UBS sample achieved an average performance of 0.67% after fees in April. As in March, there were no negative results. The return since the beginning of the year is 3.35%.

read article
show all articles