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

How Advisors Can Put together Rich Purchasers for an Unsure Yr


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

In a latest cellphone interview, we requested Brenda O’Connor Juanas, senior vice chairman, wealth administration at UBS, about a few of the largest points dealing with HNW and UHNW purchasers.

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

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

BRENDA O’CONNOR JUANAS: It’s been a fairly horrible yr for traders and enterprise house owners alike, and quite a lot of 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 taking a look at.

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

Throughout the board, it’s simply been a very troublesome yr. I might say what’s most regarding to traders now, and albeit myself as effectively, 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 means of.

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

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

First, it is a actual alternative simply to scrub up and strengthen steadiness sheets. So that may imply a number of issues for traders and enterprise house owners.

One factor that we’ve been doing with our purchasers is paying down credit score amenities or debt that’s grow to be much more costly than it has been firstly of the yr. Companies which might be in our portfolio are reducing prices on the enterprise aspect.

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

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

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

On the investor aspect, I’m not going 100% into the markets with contemporary money. However I’m actually taking a look at this opportunistically.

There are particular areas of the market, sure geographies which might be beginning to look fascinating from an analysis perspective that we’re dipping our toe in.

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