This week, Swiss private bank Julius Baer released its Family Barometer Report 2023, produced in collaboration with PWC Switzerland. The report assesses what topics matter most to wealthy families this year.

The 2023 Family Barometer by Julius Baer, written in collaboration with PWC Switzerland, found that political stability is a big concern for wealthy families, especially in Asia.

Wealthy families are taking political stability and geopolitics into account far more than before, not just in their investment decisions, but in how they structure their overall wealth, the firm said.

On a global level, the survey shows that taxes and regulation are the second highest ranked topic, rising from fourth in 2022. Continuing political instability and pressure on public-sector finances mean that changes to tax and regulation are likely to continue. Yet these adjustments require an understanding of fine details in each country, making local specialist expertise essential, the firm said.

"Family wealth-related topics beyond investments and collaboration with advisors is a topic as old as time. Yet the turmoil of the past three years explains why it’s the main topic clients want to discuss once again this year. Over the past few decades, wealthy families have spread across the globe as they go to university, work and marry in different countries, making their affairs naturally complex." the authors of the report said. "But then Covid-19 turned the world upside down in 2020, heightening that complexity. Since then, geopolitics have made constant challenges a normal state of affairs. As a result, wealthy families need more specialist advice, not only to cater for complexity, but also to manage inherent risks raised by exposure to a multitude of legislations."

Asian discussions
Families in Asia also reported the highest interest in discussing family wealth-related topics with advisors, compared with other regions, the firm added.

The past year has confirmed the greater complexity of our world: geopolitical tensions have intensified, central banks have raised interest rates to contain resurgent inflation and asset prices have corrected. As a result, wealthy families need more specialist advice, not only to cater for complexity, but also to manage inherent risks raised by exposure to a multitude of legislations, the firm continued.

In addition, the survey found that compared with other regions, families in Asia placed the strongest importance on philanthropy. Talking about how philanthropy aligns with family values can foster cohesion between an extended international family’s different branches and generations. What’s more, involving the next generation of a family at a young age can instill pride, responsibility and identification with the family's values, the firm said.

Wealthy families in Asia also seem to place relatively less emphasis on family governance and engage less in real estate investments compared with other regions, the survey reveals.

Meanwhile, similar to families in the Middle East and Africa, the size of the first substantial investment by Asian families is higher than that  of families in the Americas and Europe.

The barometer monitors the shifting opinions of financial services experts who work with and advise wealthy clients. For the 2023 edition, more than 1,500 internal and external experts from Europe, Asia, the Middle East, Africa, and the Americas were canvassed.