|By PR Newswire||
|December 10, 2012 08:01 AM EST||
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.
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.
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
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 4, 2016 04:15 PM EST Reads: 4,138
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 4, 2016 04:15 PM EST Reads: 593
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Dec. 4, 2016 03:00 PM EST Reads: 3,245
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, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 4, 2016 02:15 PM EST Reads: 1,991
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
Dec. 4, 2016 02:00 PM EST Reads: 917
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Dec. 4, 2016 02:00 PM EST Reads: 1,898
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 4, 2016 02:00 PM EST Reads: 572
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, 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.
Dec. 4, 2016 01:45 PM EST Reads: 2,155
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 4, 2016 01:30 PM EST Reads: 1,535
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, 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 opportunity. Submit your speaking proposal ...
Dec. 4, 2016 12:45 PM EST Reads: 2,124
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 4, 2016 12:30 PM EST Reads: 1,671
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 4, 2016 12:00 PM EST Reads: 781
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 4, 2016 11:45 AM EST Reads: 382
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 4, 2016 11:15 AM EST Reads: 906
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Dec. 4, 2016 11:15 AM EST Reads: 2,211
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 4, 2016 10:45 AM EST Reads: 884
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Dec. 4, 2016 09:45 AM EST Reads: 558
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Dec. 4, 2016 09:30 AM EST Reads: 812
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Dec. 4, 2016 09:30 AM EST Reads: 616
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 4, 2016 08:00 AM EST Reads: 724