Welcome!

Microsoft Cloud Authors: Janakiram MSV, Pat Romanski, Steven Mandel, John Basso, Liz McMillan

News Feed Item

Mobile millionaires place family and quality of life above business interests: RBC Wealth Management

Global mobility shapes investment approach;
Cultural ties influence wealth transfer and philanthropy

TORONTO, Dec. 10, 2012 /PRNewswire/ - A global, nomadic approach to personal and professional life is a key factor to the success of millionaires around the world, according to a new research report released today by RBC Wealth Management and The Economist Intelligence Unit (EIU). Quality of life and family needs were the top considerations for millionaires who left their birth country in search of success, rated as important by 88 per cent and 79 per cent respectively, while business interests were a key factor for two-thirds (67 per cent).

The report, Wealth Through the Prism of Culture and Mobility, investigates the investment, wealth transfer and charitable-giving behaviours of individuals who live, work, or spend more than half their time outside their country of birth and have investable assets of at least US$1 million. Focusing on this group of internationally-mobile wealthy individuals (IMWIs), the report highlights how the global paths of the wealthy influence their key wealth decisions.

"As globalized economies converge, high net worth individuals have increasingly international footprints, with personal and professional interests in multiple geographies," said George Lewis, Group Head, RBC Wealth Management & Insurance. "Our experience working with high net worth clients around the world shows that their success is often strongly influenced by a global perspective about building, protecting and ultimately transferring wealth to future generations."

A Global Approach To Income And Investing
According to the survey, most internationally-mobile wealthy individuals (60 per cent) generate the majority of their income from the country they now call home. In turn, almost half (48 per cent) invest the majority of their income back into their country of residence, while nearly a third (32 per cent) invest primarily in their country of origin. IMWIs take a similarly global approach when it comes to what they invest in, with global equities favoured by over a third (36 per cent), compared to just a quarter (25 per cent) of millionaires who have stayed in their home country.

Real Estate The Top Asset Class for Mobile Millionaires
Real estate leads the list of preferred asset classes for the internationally-mobile wealthy, with over half (53 per cent) having it as a high or very high proportion of their portfolio. A propensity to invest very heavily in real estate is apparent among those living in the Asia-Pacific region, with almost a third (31 per cent) doing so compared to just seven per cent of their counterparts in North America and 10 per cent of those in Western Europe. Mobile millionaires are also more likely to have significant investments in precious metals compared to their home-based wealthy peers (21 per cent versus 13 per cent).

Wealth Transfer And Charitable Giving: Which Home Is Where The Heart Is?
The most common approach to wealth transfer is to leave enough to their family so they are comfortable but still have to work for a living (33 per cent). However, unique differences exist based on where respondents were born. Those from Asia-Pacific are the most likely to leave all their assets to their families, with 41 per cent planning to do so, compared to just over a quarter (27 per cent) of IMWIs from other regions. Meanwhile, North Americans are the most likely to leave assets to charity, with 29 per cent planning significant donations compared to just 11 per cent of IMWIs from other markets. Despite these varied plans, over a third of respondents do not have a will (37 per cent) and admit to not fully understanding the tax regimes their assets are subject to (34 per cent), factors which may impact what their families and charitable causes will inherit.

North American Residents Give Where They Live
While birth country influences charitable giving as part of an estate plan, country of residence affects current levels of donations among mobile millionaires, likely due to levels of government social spending and charitable tax benefits. Respondents in North America prefer to give where they live, with three-quarters (76 per cent) giving to local causes, while those in the Asia-Pacific region are more focused on their birth countries, with 48 per cent giving to causes back at home, 38 per cent to causes where they reside and 13 per cent to causes in other countries. Children's charities receive 27 per cent of total donations from respondents followed by health, education and poverty reduction causes, which attract 13, 12 and 11 per cent of donations respectively.

Internationally-mobile wealthy individuals: Fast facts

  • They are generally self-made, having earned their wealth as professionals
    • (29 per cent), entrepreneurs (17 per cent) or as executives of public organizations (12 per cent). Less than a third (30 per cent) grew up with high net worth parents.
  • Younger millionaires (aged 40 and under) generated wealth through more diverse means, with only 17 per cent earning wealth as professionals, compared to 26 per cent of those aged 41-to-50 group and 41 per cent of those older than 50.
  • Those born in Asia-Pacific generated wealth at a younger age, with almost half (46 per cent) aged 40 and under, compared to 19 per cent of those from other regions.
  • Residents of Singapore and UK are the most likely to have three or more personal residences, with 29 per cent and 28 per cent calling at least three places home respectively, compared with 18 per cent of those in Canada and nine per cent of those in the U.S.

These are some of the findings from Wealth Through The Prism of Culture and Mobility, a research study conducted by The Economist Intelligence Unit through June to October 2012. The EIU conducted an online survey of 558 high-net-worth individuals, using a stratified sample that included 300 respondents who live or work outside their country of birth or spend more than half of their time outside their home country. Survey findings from the latter group of IMWIs forms the basis for most of this report, while the 258 non-mobile respondents provide benchmarks for comparison. The EIU also conducted a number of in-depth interviews with select survey respondents in person or by phone. The margin of error, with a sample size of 558 and a confidence level of 95 per cent, is 4.15.

About RBC Wealth Management:
RBC Wealth Management is one of the world's top 10 largest wealth managers. RBC Wealth Management directly serves affluent, high-net-worth and ultra-high-net-worth clients in Canada, the United States, Latin America, Europe, the Middle East, Africa and Asia with a full suite of banking, investment, trust and other wealth management solutions. The business also provides asset management products and services directly and through RBC and third-party distributors to institutional and individual clients, through its RBC Global Asset Management business (which includes BlueBay Asset Management). RBC Wealth Management has more than C$577 billion of assets under administration, more than C$339 billion of assets under management and approximately 4,300 financial consultants, advisors, private bankers and trust officers.

About RBC:
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. We are Canada's largest bank as measured by assets and market capitalization, and among the largest banks in the world, based on market capitalization. We are one of North America's leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, investor services and wholesale banking on a global basis. We employ approximately 80,000 full- and part-time employees who serve more than 15 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 49 other countries. For more information, please visit rbc.com.

About The Economist Intelligence Unit
The Economist Intelligence Unit (EIU) is the world's leading resource for economic and business research, forecasting and analysis. It provides accurate and impartial intelligence for companies, government agencies, financial institutions and academic organisations around the globe, inspiring business leaders to act with confidence since 1946. EIU products include its flagship Country Reports service, providing political and economic analysis for 195 countries, and a portfolio of subscription-based data and forecasting services. The company also undertakes bespoke research and analysis projects on individual markets and business sectors. More information is available at www.eiu.com.

The EIU is headquartered in London, UK, with offices in more than 40 cities and a network of some 650 country experts and analysts worldwide. It operates independently as the business-to-business arm of The Economist Group, the leading source of analysis on international business and world affairs.

SOURCE RBC

Image with caption: "Mobile millionaires place family and quality of life above business interests: RBC Wealth Management (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20121210_C7238_PHOTO_EN_21681.jpg

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...