Family offices confident recent growth in wealth will continue

• 68% of family office professionals say the value of their organisation’s assets has increased in the past five years, and 92% predict more growth in the next five years
• The Cayman Islands, Hong Kong and Singapore are the top three jurisdictions most likely to benefit, Ocorian research shows

New global research* from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows family offices are confident their wealth will continue to grow with the Cayman Islands, Hong Kong and Singapore believed to be the jurisdictions set to capitalise the most.

Ocorian’s international study among more than 300 family office professionals collectively responsible for around $155 billion assets under management reveals almost seven in ten (68%) say the value of the assets held by their family office has increased during the past five years. Of these, 9% say the value has increased dramatically. Just under a third (30%) say the value has stayed the same and only 2% say values have decreased.

More than nine in ten (92%) of those who have seen asset values increase expect even more growth over the next five years with 48% expecting dramatic increases.

The research shows that the Cayman Islands, Hong Kong and Singapore are the top three jurisdictions which are most likely to benefit from this increasing wealth over the next three years. Nearly half (45%) of family office professionals think Singapore will see the biggest growth in family offices and businesses using them for wealth planning or structuring their wealth over the next three years. This was followed by the Cayman Islands (41%) and Hong Kong (32%).

The family office professionals surveyed said the top factor to consider when choosing a jurisdiction to structure wealth was the ability to manage costs, followed by cultural considerations and a transparent tax regime. This was followed by being fluent in the native language, having a better time zone, and political stability. The seventh to tenth ranked factors are international reputation, infrastructure and expertise, common law jurisdiction and how accessible the jurisdiction is for travel.

Novia Lu, Commercial Director, APAC, Ocorian commented: “These survey results show that family offices are flourishing and they’re only predicting further growth in their wealth in the future – which is good news for all jurisdictions globally. However, in Singapore, the regulatory environment is becoming increasingly stringent, particularly in areas such as anti-money laundering. This is making it much more challenging to open bank accounts, especially for clients from China. As a result, we’re advising many of our clients to consider opening accounts in Hong Kong or Switzerland first before pursuing Singapore, as the process in Singapore could take much longer. Many key intermediaries share this view and are giving the same advice.

“Hong Kong is uniquely positioned in a sweet spot. We are observing a growing trend of Singaporean settlors establishing single-family offices in Hong Kong, treating it as an offshore jurisdiction. In some cases, this move is backed by Australian investment.

“While Singapore remains a preferred choice for many Chinese clients, if conducting business there becomes too difficult, they will likely shift their focus to Hong Kong or the UAE. Additionally, for European high-net-worth individuals, the Cayman Islands remains an attractive option, and also in Asia, the UAE and the UK are becoming increasingly popular; the UAE offers benefits like the golden visa, which requires minimal residency.”

Ocorian’s award winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.