Billionaire clients are overwhelmingly convinced they should use their wealth to ease the social and environmental problems the world is facing, according to UBS.
The wealth giant’s ‘Billionaires Ambitions Report 2022’ found that 95% of ultra-high net worths (UHNW) believe they should use their resources to tackle global challenges, with more than two-thirds seeing it as their duty to “lead the way”.
They see the greatest opportunities to make a difference in smart agriculture, clean water and sanitation, as well as economic development and poverty alleviation.
According to the respondents, the best way to bring about change is working with like-minded businesspeople, philanthropists and governments.
But UHNWs don’t want this push to stop with them; as 75% intend to instil these attitudes and values to the next generation.
Billionaires believe that addressing global challenges will help them combine personal values with financial returns, with a third firmly convinced that future investment returns will be linked to fighting global challenges.
“We’re living through an era where instability and innovation collide. This has created a cohort of billionaires with a high level of technical expertise, who first and foremost see themselves as problem-solvers,” said George Athanasopoulos, head of global family and institutional wealth at UBS.
“Like everyone else, they are concerned about the challenges facing the world, and they are in an ideal position to use their entrepreneurial capital to deliver fresh approaches and effective ways of doing what’s needed to tackle these issues. They are optimistic about the role that private enterprise can play alongside governments in creating a positive impact for future generations.”
Wealth fluctuations
The report also discovered the total number of billionaires around the world has declined slightly due to a volatile environment.
As of March 2022, there were 2,668 billionaires, compared with 2,755 the previous year.
More specifically, 360 people saw their wealth fall below the $1bn (£821m, €953m) threshold, while 273 surpassed it in 2022.
Similarly, total billionaire wealth went from $13.1trn in 2021 to $12.7trn in 2022.
But UBS expects the total number of billionaires and their wealth to have fallen further since March 2022 due to a decline in asset prices.
Regional trends
In terms of geographical locations, Asia Pacific still holds the largest number of billionaires with 1,084, but this is down by 59 people. Total billionaire wealth in Apac was down nearly 10% to $4.2trn.
In contrast, India’s billionaire population flourished and overtook the UK as the fifth largest economy in 2022. It had 166 billionaires, up from 140 the previous year.
The US, which is home to around a third of billionaires, remained resilient with 735 UHNWs, up from 724 last year. Total wealth followed a similar trend, with a 7% increase to $4.7trn.
Wealth across western Europe remained flat at $2.3trn while the number of UHNWs dropped to 467 from 474.
More significant fluctuations were experienced in eastern Europe, due to the war in Ukraine, with the number of billionaires falling to 127 from 154, and wealth dropping by over a third to $455bn.
The Middle East and Africa reported somewhat positive trends for the UHNW, with total wealth growing by 7.5% to $279.4bn, but the population decreased slightly to 89 from 91.
