Welcome!

Microsoft Cloud Authors: Srinivasan Sundara Rajan, Pat Romanski, Glenn Rossman, Janakiram MSV, Steven Mandel

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
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze 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. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
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...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
SYS-CON Events announced today that Pulzze Systems 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. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. 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...
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...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
SYS-CON Events announced today that China Unicom 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. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...