UBS invests in Asia youth

Young successors participate in a next-generation program activity hosted by UBS on July 17 in Zhangjiakou, Hebei Province. Photo: Courtesy of USB

This year marks the 10th anniversary of UBS Wealth Management's next-generation programs in the Asia-Pacific region. The milestone is a testament to UBS's commitment to help clients with succession management and prepare younger generations for responsible ownership and management of family wealth.

UBS's next-generation programs were introduced in Asia to fulfill the needs of UBS Wealth Management clients whose primary concerns are about wealth protection and value succession over multiple generations.

The programs seek to prepare younger generations for responsible ownership and management of family wealth. They also act as platforms through which participants may learn from their peers and establish ties with families from different countries and cultures.

UBS Wealth Management has run client-education programs in various markets for the last two decades, with regional programs in Asia launched in 2003. Over the years, more than 500 young successors have participated in UBS programs in Asia.

"UBS has been a pioneer in running programs centered on succession management for a decade in the Asia-Pacific. Succession management is an extremely important topic to our clients in Asia, many of whom are first- or second-generation entrepreneurs who are still very much involved in the running of their family businesses," said Kathryn Shih, CEO of UBS Asia-Pacific.

Amy Lo, regional head of the Ultra High Net Worth division at UBS Asia-Pacific, noted many wealth management clients in Asia are entrepreneurs whose children need to be equipped to oversee the succession or integration of family enterprises.

"It is important for [successors] to be able to manage the transition of the business and, more generally, manage the family's wealth and ... implications for the family. This is a topic which we know is close to the hearts of our clients, and we are proud to have seen many graduates of our next-generation programs go on to become successful business leaders in Asia," said Lo.

UBS runs a range of programs exclusively tailored for the younger generation. These range from career talks to longer courses covering finance, leadership and personal development.

A case in point is the UBS Young Successors Program, a two-week program specially catered to familiarize young successors with the complexities and challenges they will face as heirs.

It seeks to provide participants with an understanding of asset classes, and the basics of investment and risk management.

The topics covered include family governance, succession planning, entrepreneurship and leadership. All are presented via a series of interactive workshops, lectures and discussions. Participants hail from all over the world.

They are typically aged between 20 and 29 with a tertiary education, or are on track to having one.

In 2012, UBS presented the International Herald Tribune's "Exploring Your Academic Future Overseas" forum. It attracted 1,500 parents and children, in Singapore, Taipei, Hong Kong and Shanghai. The education forum was organized exclusively for UBS clients and their children on various subjects, including what university deans look for in international students, the differences in US university education versus a European or Asian university education, and how universities are catering to international students.

Speakers included New York Times editor and author, Jacques Steinberg, and IHT Education Editor, Joyce Lau.

In the year ahead, UBS will be organizing several well-structured programs and workshops around succession management for the Asia-Pacific region, including Hong Kong, Singapore, the Chinese mainland and Taiwan.