Just 16% of Ireland’s wealthy individuals plan to move abroad in the next five years, compared to 20% of high net worth individuals in the UK
Just 36% of Irish high net worth individuals (HNWIs) are invested in a geographically diverse portfolio of assets, less than any other nationality surveyed as part of the latest Wealth Insights report from Barclays.
The report, entitled Wealth Insights Volume 18: The Rise of the Global Citizen, surveyed 2,000 HNWIs globally, comprising entrepreneurs, business leaders and investors and navigates the global landscape of wealth, examining where individuals today live, work, retire and give their time and money.
The report highlights that apart from being less geographically diversified as investors, Irish HNWIs continue to hold the majority of their wealth in Ireland, with 68% saying that none of their wealth is held in an institution or bank located abroad. This compares to a European average of 50%.
Commenting on the findings Pat McCormack, Head of Wealth and Investment Management with Barclays in Ireland said: “We continue to encourage investors to review their portfolios regularly to ensure they are balanced and consistently match their goals. It is interesting to see that Irish investors are less geographically diversified than their EU peers but not surprising as we know from previous research that Irish HNWIs continue to hold a very high proportion of their wealth in property. At the same time, Irish investors remain underweighted when it comes to international equities and other investments when compared with their European counterparts, and this may again go some way in explaining these findings.”
Heritage and healthy work-life balance create ties to Ireland
While 44% of HNWIs in the Republic of Ireland (ROI) have lived in more than one country, and 26% have lived in three or more, their offspring could ascend to become true global citizens, according to the report. The majority (70%) of Ireland’s HNWIs believe their children will live in more countries than they have done, compared to just over half (53%) of HNWIs in the UK.
The report does however reveal that just 16% of wealthy individuals in Ireland are planning to move to a different country in the next five years, compared to 20% in the UK and a European average of 18%.
With regard to the reasons keeping Irish HNWIs in Ireland, the vast majority (92%) of those surveyed said that they remain in the country because they were born and brought up here, followed by being able to enjoy a good work-life balance by living here (38%).
Conversely, Irish HNWIs considering a move abroad said that their motivations for doing so were the opportunity for an international career and a lower cost of living (both 38% respectively). Other reasons included their partners, retirement and a more desirable climate.
Philanthropy
As well as keeping their families and business interests within the country, wealthy individuals in Ireland also choose philanthropic causes close to home. 60% of HNWIs in Ireland prefer to donate their time and money to local – rather than global – causes, indicating a commitment to use their wealth to help their own country prosper. This compares to 52% of HNWIs in the UK saying they would rather give their time and money to local charitable initiatives over global ones.
Different macro-environmental factors affect HNWIs wanderlust
Worldwide, the report shows that it is entrepreneurs and HNWIs in emerging markets who are most likely to be planning a move in the next five years, as the opening up of markets, advances in technology and political and economic uncertainty in certain regions are combining to create a more mobile global high net worth population.
Those who have made their wealth through entrepreneurship are twice as likely as the rest of the world’s wealthy population to be planning a move. Just under a third (29%) of wealthy entrepreneurs are considering relocating within the next five years, compared to 16% of global HNWIs.
For entrepreneurs currently planning a move, 41% are looking to move for economic opportunity, 29% are doing so to start a new business and 27% to pursue an international career, showing that high net worth business owners are increasingly looking to new markets for growth.
Across global markets, nearly half (47%) of HNWIs in China and a third (36%) in Qatar and Latin America (34%) are considering a move, compared to just 7% in Japan, 6% in the US and 4% in Switzerland.
While the Chinese and Qatari wealthy are the most driven by better educational and employment opportunities for their children (78% and 39% say this respectively), those in Latin America are looking to move in order to have better economic security (29%).
Article Published: 18/09/2014