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The world's wealthy are on the move
The winning and losing countries in attracting the world’s wealthy
Family office insights this week:
The winners and losers in attracting the world’s wealthy
Why being young is being rich
The average age of family offices isn’t what you think
A book on the unraveling of a Wall Street legend
A $3 billion family office wealth management role
The world’s wealthy are on the move
This week I read the Henley Private Wealth Migration Report so you don’t have to.
Henley & Partners is a global investment migration consultancy based in London, but with over 50 offices worldwide.
Each year they publish a report on the expected relocation of HNWIs and UHNWIs worldwide (so anyone with over $1 million in investable wealth).
Millionaire migration impacts both the countries they're leaving and the countries they move to. Aside from bringing their wealth, 60% of centi-millionaires and billionaires are entrepreneurs and founders - they stimulate growth and jobs.
More movement than ever
Millionaire movement has been rising year on year (with the understandable exception of the Covid years).
This year sees the highest number yet, with 128,000 HNWIs and UHNWIs set to relocate to new jurisdictions.
With geopolitical instability cited as the primary concern for the wealthy, wealthy people are more comfortable looking for an alternative home.
As expected, the highest inflow of wealthy individuals comes from countries that have policies designed to entice them.
More than that, 9 of the top 10 countries for millionaire inflow this year have a formal investment migration program.
Top ten countries for projected inflow of millionaires
click to enlarge
With their zero income tax rate, golden visa program, central location and nonchalantly opulent lifestyle, the Emirates can expect the highest inflow of millionaires this year at 6,700.
The region has made notable efforts to develop a more robust wealth management ecosystem over the last few years, not to mention bold tourism marketing campaigns.
Most of the inflow has been from India, the wider Middle East, Russia and Africa, but now also includes more wealthy individuals coming from Europe and the UK.
Second in terms of inflow is the US, with 3,800 millionaires set to relocate, and Singapore coming in third with 3,500.
Perhaps unsurprisingly, Israel has dropped out of top ten for first time, showing the impact of conflict on a country's ability to either attract or retain the wealthy.
Top ten countries for projected outflow of millionaires
click to enlarge
China is set to see the most millionaires depart at 15,200, probably no surprise, but while India and Russia are both in the top outflow countries, their numbers are decreasing.
Most notable on this list is the UK in second place, with 9,500 millionaires set to leave for more appealing jurisdictions.
For context: 9,500 is more than double last year's rate, and the total over the last six years was 16,500.
Unwelcome policy decisions play a central role, including estate duties and the recent non-dom tax regime ending, which allowed those with wealth overseas not to be taxed in the UK.
Reasons for departures vary between countries, and while policy might be making the UK less hospitable to the wealthy, the exodus in China and India is largely driven by newly wealthy seeing opportunity, better lifestyle or safer environments elsewhere. Health and education can play a role too.
Top ten countries for millionaire growth
click to enlarge
The numbers showing millionaire growth reflect the same narrative reflected across newswires: the growth of Asia and the slowdown of Europe and the US.
While the US is in fifth position in terms of millionaire growth over the last decade, the top four spots go to China, India, UAE and Singapore.
As for Europe, only Switzerland and Italy are in the top ten countries for millionaire growth.
Record number of inquiries
Henley & Partners have received a record number of inquiries about residence and citizenship over the past year, with requests coming in from over 200 countries.
The most requests were from the US and India.
The full Henley Private Wealth Migration Report can be viewed on their website here.
We are in an age of populism, but when governments play to the gallery by taxing the rich, the rich respond by packing their bags.
𝕏 highlights
If you are young, you are rich.
If you are young, you are rich
And you shouldn’t waste your time chasing money
Felix Dennis in contrarian mood:
— Mr Family Office (@MrFamilyOffice)
7:33 PM • Jul 6, 2024
And family offices are young.
The average age of family offices is….
….young
This sector is just getting started
🚀 📈
— Mr Family Office (@MrFamilyOffice)
4:25 PM • Jul 8, 2024
Does your family office have swag?
family offices don’t tend to do company swag
feel like I’m missing out
— Mr Family Office (@MrFamilyOffice)
11:31 AM • Jul 7, 2024
💼 where to work
Get on the rocket ship! The family office world continues to make waves. Discreetly, of course. Here’s three family office job opportunities…
Family offices: if you have a job you would like to share, hit reply to this mail!
📚 what to read
The Fund by Rob Copeland tells the story of hedge fund legend and Bridgewater Associates founder Ray Dalio.
It’s unauthorized and it shows… it paints a dark picture of Dalio with his sometimes bizarre and often bullying approach to managing his people.
📻 what to listen to
Who needs to spend hundreds of thousands on an MBA? In The $100 MBA Omar Zenhom delivers concise, practical business lessons aimed at entrepreneurs and small business owners. Highly practical and hands-on.
📺 what to watch
Super Pumped based on Mike Isaac's nonfiction book tells the story of former Uber CEO Travis Kalanick’s meteoric rise and dramatic fall.
And finally…
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