Diversification into trusted jurisdictions is critical for wealth preservation

2018-05-07 00:00:00.0

A long-term diverse strategy of preserving wealth is not only an ideal antidote to political instability and market uncertainty, but also the best method to ensure peace of mind.

When preserving wealth for future generations, it’s usually advised not to put all your eggs in one basket. In fact, a goals-driven plan that includes onshore and offshore legacy wealth management is the go-to solution, combined with services that take care of wills, estate planning and trusts.

With risk on the rise around the world and notably in South Africa – where currency volatility, ratings downgrades and political uncertainty is unsettling the nerves of investors – everyone is concerned about the safety of their wealth. According to Philip Smith, Head of Investments and Fiduciary at Standard Bank Wealth International, an optimal level of offshore diversification can ensure a portfolio’s eggs aren’t crushed when bad news strikes, and long-term goal setting will help to achieve an individual’s long-term goals.

A footprint in South Africa, Ghana, Nigeria, Kenya, London, Jersey and Mauritius combined with a 154-year heritage empowers Standard Bank Wealth International with the diversification needed to provide bespoke and globally effective wealth planning to wealthy individuals throughout Africa. The need for these services is increasing as wealth rises throughout the continent.

The 2018 edition of The Knight Frank Wealth Report shows that Africa’s population of ultra-wealthy individuals (with net assets worth USD50 million or more) rose 7% to 1 190 last year from 1 110 in 2016, with more than half of them coming from just two countries, South Africa and Egypt. Those with net assets of USD5 million or more also increased 7%; from 21 460 in 2016 to 22 970 in 2017.

Growth in Africa’s ultra-wealthy populations outpaced that of the Middle East and North America, and African wealth is expected to increase again in 2018, while the total number of Africans worth USD50 million or more is forecast to climb 31% to 1 560 by 2022. The survey also reveals that the majority of investors still feel under-invested in property and are looking to rebalance overall portfolios. Devising efficient strategies for holding assets, both domestically and internationally is needed, says Mr Smith.

The reality is, more African families are starting to adopt a global lifestyle and choosing to structure their ambitions accordingly. Standard Bank Wealth International’s integrated onshore and offshore proposition serves these clients across the full spectrum of products and services required in their home territories, as well as internationally.

“At Standard Bank Wealth International, we are extremely well positioned to deliver bespoke wealth management and banking solutions seamlessly within South Africa, Africa and offshore. But taking that first step is crucial. No doubt going offshore is always a daunting task, but choosing the right destination and partner remains crucial to ensuring wealth is protected,” says Mr Smith.