Generational issue. Thoughts from a conference on management of private wealth
ARTinvestment.RU   22 октября 2012

The country has a large untapped potential for art banking services, the formation of family collections and other activities related to art investments. How is wealth management industry, which then formed the new trends?

October 18 ARTinvestment.RU V participated in the jubilee conference «Private Banking & Wealth Management in Russia: strategies for working with VIP». Made a short presentation about our art market, but for the most part, of course, listened. Topic profile for us: there is a large untapped potential for services to art banking services to form a family of collections and other activities associated with investments in the arts. Therefore, it was interesting in the first place to understand how they feel and what breathes wealth management industry, which then formed the new trends? Markets have related, and some abstracts of presentations bankers certainly seem interesting to our collectors and investors.

start with the statistics:

1. Different researchers (including Credit Suisse and Merrill Lynch) are of the opinion that in Russia there are about 100,000 dollar millionaires. It is projected that by 2015 this number will increase to 1.7-2 times - perhaps with the proviso that if current political landscape (which I already added to itself). The number of Russian millionaires increased rate of about 13%per year.

2. Before the crisis, Russian clients wealth management industry preferred to keep their money in the Russian management companies, and after the crisis - in Swiss banks. Some market lead even typical "Russian alignment": 10-20%of the money held in Russia, and the rest - abroad, mainly in Switzerland, but there are more exotic types of jurisdiction in Singapore. Russian (and Chinese) are distinguished by the fact that a significant portion of the assets (40%) held in cash.

3. By the number of "ultrahaynetov" (families with a state of 50 million to 1 billion dollars), Russia is in 9th place in the world (between Canada and Italy).

4. 3 quarters of 2012 Russia exported $ 58 billion, and in 2011 - $ 80 billion.

5. In Europe, the "entry ticket" to the client private banking costs from $ 5 million, and in Russia - from 300 thousand dollars.

Workers wealth management complain that the time is now, when customers engage in some fine investment schemes hard enough. Because high rates on deposits. People prefer to be 8.10%per annum and a mustache does not blow. Therefore particularly important to search for unconventional ideas and services - "hooks" that can be secured by a hook. In practice, these "hooks" may be the most unexpected things. In particular, one banker said that the possibility of payment of electricity bills in a small Italian town, allowed his two bank attract clients from the list Forbes. But rather, it is an example of the exotic. Not exactly replicated.

Yet now there is a new challenge, which is to control private capital is standard: the market felt the change of generation and demand on education services became heirs. There are special programs for the heirs to encourage them to join the family business and, roughly speaking, to learn how to handle money. A number of banks have experienced this situation on myself when such programs are needed personally and their founders and management.

Meanwhile, the situation in many rich families there was typical. The older generation is preparing to withdraw from cases. And many of their children and grandchildren have chosen artists. Due to the new circumstances in which they are not interested in making money, and personal development, new experiences. Brought up as "people of the world", they travel a lot, interested in everything new, and their family provides all the capabilities for this.

task interest heirs banks decide differently. For example, the "Uralsib" is a program where the head of the family puts in the bank $ 20 million. Moreover, almost all the money is managed by the bank (investment strategy selects a family), and one million dollars are heirs to dispose of it yourself. In this case we are not talking about a simple version of "take-and-spend." The heirs show an individual approach, involve them in the bank - in those units to which they tend. In short, in every way surround care. How, we are not told, but the direction is clear.

For our profile interesting future developments. Generational change, which keenly felt bankers in "Private", will have a huge impact on the art market. Heirs continue to develop family collection or begin to form new ones? What kind of art they collect? Will the Russian classical tradition of collecting from the older generation to the children and grandchildren? They prefer Russian art or concentrate on global names? Formed a cloud of uncertainty. And it was the position on these issues determines the development of Russian art market on a long, but not as much long-term perspective.

Presentations at the conference listened to Vladimir Bogdanov and Konstantin Babulin, AI