Publisher's ‘HNW Offshore Investment: Drivers and Motivations' draws on our 2015 Global Wealth Managers Survey to analyze the drivers behind offshore investments in the HNW space. It examines and contrasts HNW offshore investment preferences across 20 countries, providing readers with an in-depths understanding of what is motivating HNW investors to look for new homes for their wealth.
There are multiple drivers for HNW offshore investment. At a global level, almost a quarter of HNW individuals invest their assets offshore to gain access to a better or wider range of investment options, making it the most important driver. Tax efficiencies rank second, followed by access to better investment options. However, bearish financial markets and strong currency volatility in many parts of the world are also motivating investors to seek better returns abroad.
When looking at the reasons why HNW individuals allocate part of their wealth offshore, tax avoidance has historically been one of the main drivers. Much of the post-financial crisis pressure on tackling the role of offshore centers in tax avoidance has taken its toll on their importance. That said, there are a number of other reasons why HNW individuals invest their assets offshore, particularly the desire to have access to a superior range of investments tools. Those offshore centers whose selling point is purely tax avoidance would do better to reposition themselves to offer a broader range of services.