High Net Worth (HNW) Offshore Investment - Drivers and Motivations 2020

1.1 Market overview
1.2 Key findings
1.3 Critical success factors

2.1 Non-resident investment assets have hit an all-time high
2.2 Challenges are mostly fears of a repeat of past government action
2.3 More and more investors are open to booking assets abroad

3.1 Onshore investors are the core of the offshore market
3.2 While many have offshore accounts, few outside of the HNW client base are worth pursuing
3.3 Offshore investment drivers reflect a desire to seek out the best investment management

4.1 Portfolio preferences of offshore investors
4.2 Offshore wealth management is well developed in most regions
4.3 Digitization has become central to the offshore investment market

5.1 Abbreviations and acronyms
5.2 Definitions
5.3 Methodology
5.4 Secondary sources
5.5 Further reading

Table 1: Non-resident assets growth rates, 2019-20e
Table 2: COVID-19 pandemic support and stimulus spending by country/market, 2020-21
Table 3: Top booking centers for select markets (where HNW investors are expected to offshore more AUM)

Figure 1: 2020 will have recorded the fourth year of growth for the offshore investment market
Figure 2: The world can expect more wealth to flow out of North America
Figure 3: Most markets expect HNW investors to increase their offshore portfolio
Figure 4: The pandemic and threat of recession are notable drivers in North America and Europe
Figure 5: Long-term drivers of offshore wealth management growth continue to influence HNW decisions
Figure 6: Offshore investors are mostly drawn from the wider investor client base
Figure 7: Internationally connected millennials are the prime offshore market - provided they invest at all
Figure 8: Offshore investment is not common for most investors outside of the private wealth market
Figure 9: Unlike the onshore market, the small proportion of HNW investors dominate offshore AUM
Figure 10: Expats are a core component of the offshore market
Figure 11: The HNW expat market is concentrated in the US and other Anglo markets
Figure 12: Indian HNW expats dominate the market
Figure 13: The connected global economy underpins offshore wealth
Figure 14: Latin America’s political uncertain has driven many of its retail investors into the offshore market
Figure 15: HNW investors in North America relied on alternatives during the pandemic
Figure 16: The equity portion of the offshore portfolio dropped considerably due to the pandemic
Figure 17: The North American market is well provisioned with offshore services
Figure 18: Currency risk has grown over the last 10 years and is heightened in times of crisis
Figure 19: Most private wealth firms in the US and Canada can connect clients to offshore partners