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HomeLife InsuranceHow Advisors Can Put together Rich Shoppers for an Unsure Yr

How Advisors Can Put together Rich Shoppers for an Unsure Yr

It’s been a well-recognized story over the previous a number of months, with financial uncertainty and enterprise house owners and entrepreneurs in flux and going through important headwinds that might shake market and investor confidence, even amongst advisors’ high-net-worth and ultra-high-net-worth shoppers.

In a latest telephone interview, we requested Brenda O’Connor Juanas, senior vice chairman, wealth administration at UBS, about a few of the largest points going through HNW and UHNW shoppers.

O’Connor Juanas, an professional on exit and wealth planning, in addition to portfolio building, additionally instructed ThinkAdvisor what UBS advisors are telling these shoppers to put together them for what she expects can be one other 6-12 months of “stormy climate.”

THINKADVISOR: What would you say are probably the most regarding tendencies proper now for advisors and their shoppers and why? What are enterprise house owners and different HWN/UHNW shoppers saying they’re most involved about?

BRENDA O’CONNOR JUANAS: It’s been a reasonably horrible 12 months for buyers and enterprise house owners alike, and numerous this has to do with the identical points. After I take into consideration what these actual headwinds are when it comes to priorities, clearly markets are off 20% to 30% relying on what index you’re .

We’ve had rates of interest basically begin the 12 months off flat or now 4% after what the Fed did [Nov. 2]. You’ve gotten inflation that simply received’t stubbornly go under 8%. You’ve gotten a robust U.S. greenback, the strongest we’ve seen within the final 20 years. You’ve gotten wage progress, which has made it troublesome for firms to rent and retain expertise.

Throughout the board, it’s simply been a very troublesome 12 months. I’d say what’s most regarding to buyers now, and albeit myself as properly, and even [Fed Chair Jerome] Powell talked about this [recently], is that we’re not out of the woods but. There’s nonetheless fairly a little bit of ache that must be gone by.

Most of my shoppers and enterprise proprietor contacts are simply making an attempt to determine the best way to defend and actually place each their companies and their portfolios, which for what’s going to probably be one other a minimum of six or 12 months of stormy climate.

What are UBS advisors telling enterprise house owners and different HWN/UHNW shoppers particularly now to ease their minds and why?

First, this can be a actual alternative simply to wash up and strengthen steadiness sheets. So that may imply a couple of issues for buyers and enterprise house owners.

One factor that we’ve been doing with our shoppers is paying down credit score services or debt that’s change into much more costly than it has been at first of the 12 months. Companies which can be in our portfolio are slicing prices on the enterprise facet.

By way of the portfolios that I handle, it’s actually been an train of entrusting portfolios to enhance high quality. So enhancing steadiness sheet power is one thing we’ve checked out throughout the board.

I feel the opposite merchandise that we interact shoppers on fairly steadily, each enterprise house owners and buyers, is the best way to leverage this volatility into a chance.

A few of my smartest shoppers that run companies are utilizing this era of volatility to carry provide chains on shore [and], if there’s any weakening of opponents, to have a look at that as a possible alternative as soon as the market is stabilized.

On the investor facet, I’m not going 100% into the markets with contemporary money. However I’m actually this opportunistically.

There are specific areas of the market, sure geographies which can be beginning to look attention-grabbing from an analysis perspective that we’re dipping our toe in.

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