Offshore Wealth Management – Market Trends and Competitive Dynamics 2021

Pages: 31 Published: July 29, 2022 Report Code: GDFS0393IA

The offshore investment market reached an all-time high in 2020, propelled by investors seeking to shelter their money from the ill effects of the pandemic as well as seeking out investment opportunities after the initial market pandemic. 2021 has been a quieter, and slightly negative, market as investors reassess and retreat from many of the offshore markets they flooded into during the volatile days of 2020. With negative outlooks increasingly driving offshore investment, further growth in offshore investment is expected in 2022.

This report charts the recent growth trends of the offshore wealth market, using data from GlobalData’s Offshore Investments Analytics as well as secondary sources such as the Bank for International Settlements and the direct surveys of prominent private wealth managers in the offshore investment market.

Scope

– Offshore investment values surged almost 16% in 2020 before falling back slightly in 2021.

– Almost all booking centers benefited from increased non-resident investment in 2020, but investors have grown more selected in 2021, with only a tiny minority increasing the value of such investment.

– Geopolitical risk with knock-on effects for all economies is the primary offshore driver in 2022.

– Digital wealth management is reshaping the competitive landscape even in the rarified offshore market.

– Maximizing the appeal to select HNW groups, such as NRIs, is necessary to remain competitive.

Reasons to Buy

– Understand the growth of the non-resident investor segment in recent years.

– Identify which markets have investors increasingly turning to offshore centers.

– Gain insight into the drivers behind growth in offshore investing.

– Forecast HNW demand for offshore wealth management in all key markets.

– Size key market segments within the offshore investment market.

– Examine best practice in the delivery of offshore investment services to the affluent.

Key Players

UBS

Credit Suisse

HSBC

Citibank

Standard Chartered

Morgan Stanley

Julius Baer

moomooo

Table of Contents

Table of Contents

1. Executive Summary

1.1 Market overview

1.2 Key findings

1.3 Critical success factors

2. Offshore Market Context

2.1 Non-resident investment assets continue to grow in a challenging environment

3. Challenges and Opportunities in Offshore Wealth

3.1 Regulation is a major cloud on the horizon

3.2 Geopolitical risk in the form of war is a major concern

4. Competitive Dynamics

4.1 Offshore wealth management is well developed in most regions

4.2 Digitization has become central to the offshore investment market, expanding the client base down market

4.3 Traditional full-service offshore wealth managers

5. Appendix

5.1 Supplemental data

5.2 Abbreviations and acronyms

5.3 Definitions

5.4 Methodology

5.5 Secondary sources

5.6 Further reading

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List of Tables

List of Tables

Table 1: Non-resident assets growth rates, 2020-21

Table 2: Selected markets rates of offshore investment in the general population, 2020-21

List of Figures

List of Figures

Figure 1: Offshore assets surged early in the pandemic as investors sought safe havens early on and then sought out investment opportunities

Figure 2: The tidal wave of non-resident wealth into Europe is receding

Figure 3: The central roles of New York and London remain even after wealth drains from elsewhere in the regions

Figure 4: Asia-Pacific is once again back to driving growth in the offshore market

Figure 5: Negative macroeconomic ‘push’ factors are driving the increase in HNW offshore investment

Figure 6: Australian investors who are keen to directly own a trendy tech stock are being targeting by moomoo

Figure 7: Anonymity and tax were largely absent as drivers for offshoring during the pandemic

Figure 8: Banks significantly increased their hiring for regulation and compliance in the early months of 2022

Figure 9: Regulation-related job hiring from Dec 14, 2021 to March 14, 2022 compared to previous quarter

Figure 10: The North American market is well provisioned with offshore services

Figure 11: Currency risk has grown over the last 10 years and is heightened in times of crisis

Figure 12: Most private wealth firms in the US and Canada can connect clients to offshore partners

Figure 13: Citibank’s offshore investment options cover multiple asset classes

Figure 14: ESG is just as important as high returns in markets that Standard Chartered has presence in

Figure 15: Standard Chartered’s international service caters to both liquid and illiquid offshore investments

Figure 16: HSBC Premier India services focus on international privileges and NRIs

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