In order to safeguard a fruitful heritage for the next generation, it is necessary to approach today with a forward-looking lens. “The best time to plant a tree was 20 years ago. The second best time is now”. This ancient famous Chinese proverb is likely to resonate with both family members and advisors in the private wealth space. But which is the best future-proof environment for family offices?
Whether we like it or not, 2020 was a year of phenomenal change that brought to light the shift of the world’s centre of gravity towards the East. Even though the data is not yet fully available, it is clear that the heterogeneous management of the COVID-19 pandemic has accelerated the growth gap between European, American, and Asian countries. The distribution of wealth, as a result, will be impacted in the coming months and years.
A shifting centre of gravity
Until 2019, North America led the way in terms of UHNWI’s per capita – with Asia only holding a third of the market. However, the high net worth h population in Asia is set to increase by over 40% per year within the next decade and thereby progressively contribute to an East-West wealth imbalance, with Asian wealth being one of the fastest growth worldwide.
