A large number - 76 per cent – of 120 ultra high net worth families surveyed by UBS globally claim to be “concerned” or “very concerned” about protecting their wealth, according to the The Generation Game, a UBS Family Advisory Study, a survey which has clear implications for how wealth managers invest client money.

Some 18 per cent of families said they were “slightly concerned” while only 6 per cent they were “not at all concerned”. Regionally 66 per cent of European families and 67 per cent of Asia-Pacific families surveyed said they were very concerned.

A central issue for wealthy individuals at present is how to at least protect, never mind grow, assets in a world of negative real interest rates. Also, in a number of jurisdictions, wealth has come under threat from rising taxes imposed by governments desperate to close heavy deficits.

In answer to the question “Do you have a structured approach to family wealth protection in place”, only 25 per cent responded “yes” while 50 per cent said “partially” and the rest said “no”. Regionally 76 per cent of European respondents said partially while 35 per cent of each Latin America and Asia-Pacific respondents said yes.

When asked which factor they considered the biggest show stopper in implementing a structured framework for family wealth protection, globally 32 per cent said “lack of know how”, 19 per cent cited “lack of support by family members”, 18 per cent said “constant change of situation”, 15 per cent chose “it’s not a priority at present”, 8 per cent said “lack of time” and the same number cited “it’s too complicated and cumbersome”.

Finally when asked what factor was considered the “biggest glue” holding the family together, “family history” and “interaction and communication” were chosen by the majority, representing 45 per cent and 41 per cent of global responses.

UBS concluded in the report that “the analysis shows that successful families across the globe rely on communication and alignment with the family’s shared values as the single most important factor in holding the family together. For the 76 per cent of families who consider their approach to wealth protection and succession insufficient or incomplete, the results of the UBS Family Advisory Study suggest that succession planning should build on this finding to secure family member participation and engagement in a structured approach to protect the family’s wealth across multiple generations, with built-in flexibility to accommodate changes in the family situation and priorities.”