Family offices are confident their wealth will continue to grow, with the majority seeing wealth increases over the past five years and expecting more growth over the next five years, Ocorian has found.

Its study showed that 68 per cent of family office professionals had seen the value of the assets held by their family office increase over the past five years, with 9 per cent of these saying the value had increased ‘dramatically’.

Meanwhile, nearly a third (30 per cent) reported their family office assets had remained unchanged, while 2 per cent said values had decreased.

More than nine in 10 (92 per cent) of family office professionals who had seen asset values increase expected even more growth over the next five years, with 48 per cent forecasting dramatic increases.

The research also assessed which jurisdictions were most likely to benefit from this increasing wealth over the next three years.

Nearly half (45 per cent) of family office professionals thought that Singapore would see growth in family offices and businesses using them for wealth planning or structuring their wealth.

This was followed by the Cayman Islands (41 per cent), Hong Kong (32 per cent), Jersey (29 per cent) and the United Arab Emirates (26 per cent).

Nearly a quarter (22 per cent) believed that the UK would experience growth in family offices and businesses using them for wealth planning or structuring their wealth.

Survey respondents said that the top factor to consider when choosing a jurisdiction to structure wealth was the ability to manage costs, followed by cultural considerations and a transparent tax regime.

This was followed by being fluent in the native language, having a better time zone, and political stability.

“These survey results show that family offices are flourishing and they’re only predicting further growth in their wealth in the future – which is good news for all jurisdictions globally,” commented Ocorian commercial director, APAC, Novia Lu.

“However, in Singapore, the regulatory environment is becoming increasingly stringent, particularly in areas such as anti-money laundering. This is making it much more challenging to open bank accounts, especially for clients from China.

“As a result, we’re advising many of our clients to consider opening accounts in Hong Kong or Switzerland first before pursuing Singapore, as the process in Singapore could take much longer. Many key intermediaries share this view and are giving the same advice.

“Hong Kong is uniquely positioned in a sweet spot. We are observing a growing trend of Singaporean settlors establishing single-family offices in Hong Kong, treating it as an offshore jurisdiction. In some cases, this move is backed by Australian investment.

“While Singapore remains a preferred choice for many Chinese clients, if conducting business there becomes too difficult, they will likely shift their focus to Hong Kong or the UAE.

“Additionally, for European high-net-worth individuals, the Cayman Islands remains an attractive option, and also in Asia, the UAE and the UK are becoming increasingly popular; the UAE offers benefits like the golden visa, which requires minimal residency.”

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