Offshore Wealth Management: Investor Drivers and Motivations 2024

This report draws on GlobalData's proprietary surveys to analyze the drivers behind offshore investments. It examines and contrasts offshore investment preferences across multiple jurisdictions and wealth tiers, providing readers with an in-depth understanding of what motivates investors to offshore wealth.

There is a strong correlation between offshore investments and affluence. As a result, lower wealth segments are of little appeal to wealth managers. However, compared to their older peers, millennials and Generation Z hold a greater proportion of their wealth offshore. While lower in liquid assets, more time to accumulate wealth and a higher propensity to hold wealth offshore makes younger generations an attractive segment. Meanwhile, the reasons to offshore wealth differ significantly across target markets, but an expectation of better returns and a better investment product range abroad are the most important offshore drivers when looking at the total retail deposit and investment offshore market.

Scope

• At a global level, over 40% of global HNW wealth is booked offshore.
• Globally, offshore investment penetration increases from 10% among mass market investors to 45% among the mass affluent.
• Real estate accounts for the largest component of the average global HNW offshore portfolio, driven by diversification opportunities and tax efficiencies.
• While return on investment considerations are important across wealth segments, they are notably more important among retail (i.e., non-HNW) investors.

Reasons to Buy

• Understand growth sectors within the non-resident investor segment in recent years.
• Gain insight into the drivers behind retail and HNW investor offshoring.
• Forecast HNW demand for offshore wealth management in all key markets.
• Size key market segments within the offshore investment market.
• Understand how best to promote your offshore proposition.
• Review and adjust your proposition based on a detailed understanding of the different segments that make up the offshore investment market.