Demand for global wealth mobility
The rise of economic globalisation has driven demand for wealth mobility among a growing number of South African high net worth individuals (HNWI).
Whether they’re entrepreneurs seeking crossborder expansion opportunities, local investors looking for global exposure to the world’s biggest stocks, or ultra HNWIs who retreat to their international boltholes to chase the summer, these clients require a banking solution that can facilitate the mobility of their financial assets across international boundaries.
Local demand for global wealth mobility emerged after SA’s regulators relaxed, simplified and streamlined exchange controls in the mid1990s, says Henry Blumenthal, Head of Wealth & Investment for SA at Investec. “South African HNWIs have used this opportunity to externalise their wealth, because it offers a degree of economic security through diversification, and access to global opportunities.”
Wealth mobility also creates opportunities for HNWIs to grow their wealth in real terms, given the subdued performance of local assets relative to global markets. “Much of this growth potential is predicated on the ability to invest in a larger universe of countries, currencies, shares and sectors such as pharmaceuticals and technology,” adds Blumenthal.
Additional drivers of wealth mobility cited by the DOC Research Institute include accessing more tax-efficient jurisdictions and world-class infrastructure, securing better education opportunities for children, the need for improved personal safety and the protection of property rights.
“Many HNWI have leveraged this opportunity to become global investors,” says Blumenthal. “The challenge is to make this process as seamless as possible and facilitate easy access to these markets.”
Investec’s answer is its acclaimed One Place solution. “One Place provides seamless access to local and international banking and investment services under one umbrella,” says Cumesh Moodliar, SA Head of Private Banking at Investec.
“Our clients can open a UKbased private bank account and currency access accounts from SA, which can be done through Investec Online in a few minutes. Clients are then able to receive and make payments in the UK. They can also use the facility as an offshore account to hold global currencies or access a diversity of funding options.”
Clients also benefit from a single point of contact for all their transactional banking requirements. The Investec Online and mobile app digital platforms offer a consolidated view of local and international accounts and investments.