What the Next Generation Wants From Wealth Managers

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Merryn Talks Money 30 min 8 speakers 4 chapters transcribed 2 months ago
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Merryn Somerset Webb 1:21
Bloomberg Audio Studios.
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Podcasts. Radio. News.
Merryn Somerset Webb 1:37
Welcome to Merrin Talks Your Money, the personal finance edition of Merrin Talks Money. In these bonus podcasts, we talk about the best strategies for making the most of your money. I'm Merrin Somerset Webb, editor-at-large for Bloomberg UK Money. And across the next two weeks, we are going to bring you highlights from a special broadcast we recorded at the Bloomberg offices in London on the 14th of July. It was an hour-long panel focused on how the world of wealth management is changing, about the rise of next-generation wealth clients, and the growing role of alternatives in modern portfolio construction. The panellists were John Stepak, senior reporter and author of the Money Digital newsletter, Charlie Morris, chief investment officer and founder of ByteTree, a leading provider of investment research in traditional finance and digital assets.
Merryn Somerset Webb 2:19
We also have Jean-Damien Marie, global head of investments for Barclays Private Bank and Wealth Management. Here's the first part of our conversation. Thank you all for joining me today. Now, we are going to define our terms. We are talking about the next gen of clients. What do we mean when we talk about the next gen?
Charlie Morris 2:40
That's a good question. I think for us, next gen are typically children who are really developing a sense of wealth. They're interested in investing. They're curious often. They're active. They're very active and they want to be in control often and excited. And next gen for us is a period for our clients where it's about engagement and trying to understand them better, I think.
Merryn Somerset Webb 3:09
Okay, so we're talking about the newly well-off young generation.
Charlie Morris 3:13
Correct, yes.
Merryn Somerset Webb 3:14
And be inherited. They're beneficiaries of the great wealth transfer.
Charlie Morris 3:18
Which is the biggest one happening soon, as we know. And yeah, they're learning and they're passionate often with purpose beyond returns. So capital is not the only thing that we discuss. There's a lot going on at family level, family dynamics. Capital, capital, more than returns. So the... Yeah, the discussion often with next gen goes in many directions. And what is the same as the old gen is a sense of... having some kind of growth and preservation at the same time, which is interesting. You see it's a different dynamic than entrepreneurs who are creating the wealth. Often next gen for us are taking the wealth and try to figure out what's going to be the purpose of that wealth for the next generation.
Merryn Somerset Webb 4:12
Okay, excellent. We'll definitely talk about that bit more in a minute. But I want to continue defining our terms and ask you, John, perhaps to explain what we mean when we say alternatives.
John Stepek 4:23
Yeah, alternatives are basically anything that isn't listed equity or listed bonds.

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