A Generational Shift: Family Wealth Transfer Report 2019 {A Generational Shift: Family Wealth Transfer Report 2019} – English

A Generational Shift: Family Wealth Transfer Report 2019 {A Generational Shift: Family Wealth Transfer Report 2019} – English

By the year 2030, more than $15 trillion in wealth will be transitioned from one generation to the next. For organizations seeking to understand and engage with the world’s wealthiest individuals, A Generational Shift: Family Wealth Transfer Report 2019 provides unique intelligence to understand how current wealth patterns will evolve over the next decade.

For nearly a decade, Wealth-X has been tracking family wealth transfer issues as they pertain to the global ultra high net worth (UHNW) population.  A Generational Shift: Family Wealth Transfer Report 2019 marks the first time we have produced a report on this subject that takes into account very high net worth (VHNW) individuals, or those with $5 to $30 million in net worth, alongside our continued focus on UHNW individuals, or those with a net worth in excess of $30 million.

A Generational Shift: Family Wealth Transfer Report 2019 leverages the Wealth-X global database of records on the wealthy to shed a spotlight on those individuals passing on wealth to the next generation.  From this dataset, the largest of its kind in the world, Wealth-X identifies differences in this population based on wealth tier, geographic region, source of wealth, and gender.

A Generational Shift: Family Wealth Transfer Report 2019

Key findings from the A Generational Shift: Family Wealth Transfer Report 2019 include:

  • North America Leads – $8.8 trillion will be passed on in this region alone, a testament to the scale of wealth in the US. Europe possesses a slightly older wealthy population than the global average and will pass on a significant $3.2 trillion by 2030. Asia will account for just 12% of all wealth to be passed on, a total of $1.9 trillion, largely due to its substantially younger wealthy population.
  • Growing Awareness – given that the majority of wealthy people around the world are over the age of 60, wealth transfer has become a greater priority.
  • Concentrated Wealth – an estimated 18,500 individuals with a net worth of $100 million or more will be transferring a majority of this wealth – $8 trillion.
  • Generational Shift – more so than their elders, the inheritors of this wealth maintain a more global outlook, seeking not only to preserve this wealth but also to find meaning in the way they use and manage it.

Read the full report here.

The Sport of Kings Finds Broader Audiences {The Sport of Kings Finds Broader Audiences} – English

The Sport of Kings Finds Broader Audiences {The Sport of Kings Finds Broader Audiences} – English

As much of the sports world grapples to stay relevant in an age of digitalization, fast-moving media cycles and shifting consumer preferences, a centuries old gentlemen’s game rooted in tradition is quietly, and rapidly, garnering national acclaim. And it is doing so by eschewing many industry trends.

Polo, the “Sport of Kings,” is hardly a newcomer to the global stage. It was a featured competition in five Olympic Games (1900, ’08, ’20, ’24 and ’36), and the oldest club, the Calcutta Polo Club, dates back to 1862. Artifacts suggest rudimentary versions of the game were played as early as 200 BC—though, by all accounts the modern form originated in India in the mid-19th Century.

The sport’s notoriety spread quickly throughout the late 19th Century and early 20th Century, particularly among Europe’s nobility and upper social classes. It was introduced stateside by James Gordon Bennett, a New York publisher, who hosted the first game in the United States in 1876 after seeing a match during a visit to England a year earlier.   

Yet, for more than a century, polo remained largely out of the mainstream in the U.S., receiving far less fanfare than other equestrian sports like horse racing and rodeo. Its niche positioning owed in part to the rigor of the game and significant costs, which made it largely inaccessible to much of the public.

To be sure, the nature of the game has not changed much. A physically demanding sport, both on horse and rider, polo requires competitors to be in peak condition. It’s not uncommon for a well-trained polo horse to cost as much as $200,000. Considering that riders often change mounts at each of six chukkers, or periods of play in a match, to keep their horses fresh—it’s easy to see how the cost of competitive polo can quickly escalate.

Even today, polo is not on the same plane as most major sports leagues, which is due chiefly, still, to the high bar to entry. Yet, the sport’s allure owes in no small part to that very exclusivity. Traditions remain central to the game—think ceremonial sabrages, champagne toasts and high fashion—which lend an air of sophistication that has drawn crowds hungry for an elevated experience.

In many respects, polo as a sport has shrugged off industry conventions. Rather than marketing to mass audiences, leagues have catered instead to smaller, discerning crowds. Experience is tantamount, which is evident in spectators’ own involvement in a match—like stomping the divots to return a field to a proper condition.

At the same time, the game is expanding its accessibility here in the States. Today, there are nearly 300 polo clubs in the U.S.—the most of any of the 90 countries around the world where the sport is played. Across the country, many clubs have launched programs that invite new players to experience the game without the hefty costs historically associated with the sport.

The result has been a steady growth in the sport. While it’s difficult to track national stats, many leagues report an uptick in participation and public engagement. At the International Polo Club in Palm Beach, Florida, for example, local box office revenue increased 185 percent between 2012 and 2015, including a 133 percent year-over-year gain in 2014, Forbes reports.

It may shock some, too, to know that women are polo’s fastest growing demographic. Female players made up a record 40 percent of membership in the U.S. Polo Association last year, and the number of women’s tournaments has steadily increased over the past five years.

In Sheridan, Wyoming, at the base of the Big Horn Mountains, polo is a staple of the community. Indeed, some of the country’s first matches were played here after English royalty, and with them thoroughbred horses, settled in the area in the late 1800s. Western horsemen began adopting the sport in the early 1900s, when they began selling horses to U.S. Calvary units, used the game as a training exercise.

“In those days, you could get $165 from the Government for a cavalry horse, which wasn’t bad, but you could get $300 for a polo pony,” explains Tommy Wayman, a Big Horn local who, in the 1980s, was the first U.S. player in 30 years to achieve 10-goal status, the game’s highest rank.

“Those cowboys would get an old mallet and they’d go out to the ranches, where they knew they could find horses that were broke to the saddle. Then they’d swing the mallet on them for a little bit, and the next day they’d be able to sell them as polo ponies.”

Today, on nearly any given summer afternoon, one can expect to find a friendly match at the Big Horn Polo Club. Down the road at the Flying H Polo Club, some of the world’s best players train and compete.

Led by U.S.P.A.-certified instructor Megan Flynn, the Big Horn Club now offers polo school to introduce enthusiasts, young and old, to the game. It also started a margarita league, which offers shorter games for novice players as a steppingstone to more competitive play.

“This is where everybody wants to come and play polo during the summer,” Katie Connell, president of the Big Horn Polo Club tells the Casper Star Tribune. “Our polo keeps going. It’s an unbelievable success.”

Seated in cattle country, Sheridan’s polo culture attracts many of the best players from around the world each year. The result is a unique and indelible combination of Western and English horsemanship, which puts a signature flare on the sport. It’s not unusual to see pick-up games played in roping saddles, or for Budweiser to be poured among spectators in place of customary champagne.

In many ways, Sheridan’s adoption of the game reflects its reception across the country. While keeping a foot in tradition, the sport is evolving to be more accessible to the public. It’s at once shedding pretenses that kept some at bay, while still preserving the refinement that contributes to its appeal.

“The best players in the United States are no longer the landed aristocracy,” Alex Webbe, a columnist for the Palm Beach Daily News told the New York Times in 1981. That evolution seems to now be coming full circle. No longer a sport only for society’s elite, polo has established its mass appeal, which will likely only continue to grow.

Has Billionaire Row in New York Lost Its Luster? {Has Billionaire Row in New York Lost Its Luster?} – English

Has New York’s Billionaire Row Lost Its Luster? {Has New York’s Billionaire Row Lost Its Luster?} – English

Billionaire Row, a collection of ultra-luxury skyscrapers along the southern end of Manhattan’s Central Park, is home to one of the highest concentrations of wealth in the world. Known as a Monopoly board for the uber-affluent, these buildings are the type of real estate where sales make national headlines.

In January of this year, a penthouse at 220 Central Park South broke the record for the most expensive home ever sold in the U.S., going for $238 million. That displaced a penthouse at the neighboring One57 Tower, which sold for $100 million in 2014 and had held the title as the most expensive home in New York.

These premier developments include the kind of flourishes one might expect: wall-to-ceiling glass walls, bespoke finishes, al fresco patios and amenities to suit the most discerning buyers. And with more than $4 billion in new construction coming online, two new buildings will add to New York’s luxury inventory.

However, some market experts speculate whether the appetite for this glamorous neighborhood may be dwindling. New York City’s luxury real estate prices have fallen 10 percent over the past two years, which could be pressured down further by a mansion tax set to be introduced in July. That, coupled with a glut of local inventory and “micro-market” factors, could erase some of Billionaire Row’s appeal, according to these analysts.

“From my perspective, I do not believe Billionaires’ Row would make for a good investment,” Monica Weinberg of the Terrace Tower Group tells Business Insider. The Australian-based group focuses on $2 – $15 million investments. “My personal preference is for Noho, West Village, Tribeca, and Chelsea.”

There is evidence to support that the Billionaire Row towers may be losing some of their luster. Over 40 percent of units in the eight luxury buildings that have recently been completed or are scheduled to be finished in the next several years remain unsold, Curbed reported this spring. Some have been on the market for years.

Some experts also read Amazon founder Jeff Bezo’s $80 million acquisition of a property on Fifth Avenue near Madison Square Park, further downtown from Central Park, as a sign that investors may be looking elsewhere.

“This is a great value for a marquee luxury building,” Martin Eiden of Compass says of Bezo’s purchase. “It’s less than half the square foot price of penthouses on the towers on Billionaires’ Row.”

Properties along Billionaire Row have also been dogged by tensions over a proposal to install a homeless shelter nearby. Mayor Bill de Blasio recently unveiled plans to convert the former Park Savoy Hotel into a shelter as part of the city’s “Turn the Tide” campaign. The move sparked pushback—although many owners disagree that the project poses a socio-economic conflict.

All facts considered, it’s hard to imagine that the bottom will drop out from under Billionaire Row any time soon. The buildings’ developers have protections in place to bolster prices, and the modern luxuries and enviable locations afford by these towers are the kind to attract discerning, far-sighted buyers.

Sustainability in Fashion: A Passing Fad or the New Standard? {Sustainability in Fashion: A Passing Fad or the New Standard?} – English

Sustainability in Fashion: A Passing Fad or the New Standard? {Sustainability in Fashion: A Passing Fad or the New Standard?} – English

From food to fashion, sustainability has become a forward principle in recent years. Bolstered by a shift towards social accountability, many consumer brands have put a heightened value on doing good with their products—whether that be reducing their environmental footprint, supporting eco-friendly causes or using business models as a vehicle for change.

This trend towards environmental stewardship has been embraced by the fashion world, and, some will say, not only embraced but driven forward. Certainly, the movement has opened a door of opportunity for brands that emphasize ecological responsibility.

Whether proactive or reactive, it makes sense that brands of nearly every caliber have begun to put a priority on environmental stewardship. Global textile production has more than doubled over the past 15 years, according to reports by the Ellen MacArthur Foundation. A full 85 percent of discarded clothing ends up in landfills in the United States—a cycle that produces more greenhouse emissions than sea and air shipping combined, Fortune reports.    

Yet, while the fashion industry has made strides towards greater sustainability, progress slowed last year, according to the latest Pulse of the Fashion Industry report. The annual study found that adoption of socially and environmentally conscious practices improved in 2018, but at a slower rate than in 2017. The industry’s score rose four points to 42 out of 100, which was less than the six-point gain a year earlier.

“The fashion industry is still far from sustainable,” a summary of the report states plainly. “Furthermore, the findings demonstrate that fashion companies are not implementing sustainable solutions fast enough to counterbalance the negative environmental and social impacts of the rapidly growing fashion industry.”

The amount of clothing purchased globally each year is expected to rise 63 percent by 2030 to 102 million tons. On the current trajectory, the report notes, that growth will cause the gap between sustainability progress and industry output to widen.

However, many industry leaders see an opportunity to connect with audiences and bolster their brands through elevated sustainability initiatives. Their vision—fewer, better products that reflect consumers’ interest and lifestyles. Less mass production and more personalization.

Sustainability “totally fits with what we believe in,” Anya Hindmarch, founder of the British handbag label told Fortune’s Most Powerful Women International Summit this week. Customers now expect a personal story behind the product, rather than “fast fashion,” she added.

“Nowadays [consumers] don’t just want an object, they want something to talks to them,” said Kristina Blahnik, speaking at the same event.

The approach of designing products targeted to consumers’ interests may be a winning strategy, and one that may help reduce the fashion industry’s footprint. Seventy-three percent of Millennials, the fastest-growing wealth segment, say they are willing to pay more for sustainable brands, according to Neilson’s 2015 Global Corporate Sustainability report. Eighty-one percent say they expect companies they support to make public declarations of corporate responsibility.

More than prior generations, Millennials are not content to simply observe, either. They are more likely to actively engage in the conversation. Nearly three-quarters say they will voice their opinions about a company’s social policies, according to research by Cone Communications, and with the advent of social media, they have a bullhorn to do so.

Certainly, commercial sustainability has ebbed and flowed over the past several decades. But the cultural shift among Millennials—a population that exceeds 80 million in the United States alone and which stands to inherit the largest wealth transfer in history (an estimated $30 trillion from Baby Boomers and Gen-Xers over the next 30 years)—suggests environmental awareness is more than just a passing fad.

How the fashion industry responds may well determine the future of many leading brands—and open the door to newcomers. In an era where experience is its own currency, it seems designers would be wise to follow those leaders who are personalizing their products, and reducing waste in the process.