Specialising in bespoke wealth and investment solutions for high-net-worth clients, Private Clients by Old Mutual Wealth witnessed remarkable growth, with assets under management reaching R59 billion by 31 December 2023. This was a 30% increase relative to the previous year, effectively entrenching Old Mutual’s foothold within the high-net-worth segment.

This success is notable within the context of challenging market conditions, a continued weak currency, and muted business activity in South Africa. Key to this private clients’ business success lies in the ability to work with clients and their existing advisers to guide them on global wealth management issues that extend far beyond traditional asset allocation and portfolio management.

With international assets representing a significant portion of every high-net-worth South Africa’s portfolio, working with a trusted partner is becoming increasingly important. This is where Private Clients by Old Mutual Wealth comes into play, offering diverse specialist expertise geared toward helping high-net-worth clients navigate the intricacies of global citizenship.

The concept of global citizenship has gained prominence, particularly among South Africans seeking to expand their assets internationally. This shift presents distinct challenges in terms of wealth management and succession planning. Global citizenship transcends geographies, and as individuals and families become more globally dispersed, effectively managing assets across various jurisdictions demands a comprehensive understanding of the respective financial, legal, and structural considerations.

Throughout the last decade, the South African investment management industry has been engaged in a continuous debate around local versus offshore investment exposure. However, the debate focuses too narrowly on asset management and short-term perspectives. According to Private Clients by Old Mutual Wealth, this is not aligned with the needs of true high-net-worth clients. Rather, it advocates for a paradigm shift towards holistic wealth management focused on multi-generational wealth planning.

From a pure investment perspective, the reality is that high-net-worth clients do not benefit from allocating a significant portion of their investment capital to South Africa, given its relatively small share of the global investment universe. Nonetheless, their economic stakes in South Africa, even after diversifying globally, remain noteworthy in absolute terms, and their typical business interests contribute meaningfully to local economic growth.

Therefore, the broader wealth management industry’s fixation on determining a specific percentage of offshore assets is misplaced within the high-net-worth segment, where clients are increasingly preparing for a future where some of their obligations will be in different jurisdictions or currencies. Practical scenarios include maintaining a lifestyle split between two continents (also referred to as a swallow lifestyle), funding tertiary education abroad for children or grandchildren, or emigrating to be closer to family in another country, necessitating income-generating assets.

Within an environment where competing narratives vie for attention, securing reliable and trusted solutions can be challenging, and the persistent uncertainty can be daunting for individuals and families who have diligently built up their wealth over several years.

Old Mutual Wealth’s advantage lies in combining the broader Old Mutual group’s inter-generational, multinational heritage with top talent in the industry. By leveraging over 100 Portfolio Managers and Product Investment Specialists, Old Mutual Wealth enables high-net-worth South Africans from all corners of the country to live and invest as global citizens, prioritizing inter-generational wealth accumulation. The private client business further enhances this by guiding clients through the often overwhelming and complex process of effectively structuring, safeguarding, preserving, and transferring their families’ wealth and legacies over the long-term.

The Private Clients by Old Mutual Wealth proposition is distinct. The business forges professional partnerships with financial advisors and clients, focusing on delivering on the key priorities for high-net-worth families or individuals. These include ensuring a reliable investment outcome; maintaining a well-structured balance sheet; offering personal and unrestricted access to relevant subject-matter experts; actively managing risk; crafting bespoke investment portfolios and fee structures; and providing secure custodianship of long-term wealth. Essentially functioning as a specialised family office, Private Clients by Old Mutual Wealth leverages an ethical, responsible corporate legacy that has stood the test of 180 years.

Solutions encompass an accessible international investment platform, trust structures, estate planning across multiple jurisdictions, fiduciary guidance, multi-currency exposure, guidance around the most suitable geographic locations as well as access to a leading global investment management team. Partnering with Wealth Managers, Financial Planners and Advisors, Private Clients by Old Mutual Wealth guides clients through these intricate complexities, crafting tailored, integrated wealth and investment management solutions.

Looking ahead, Private Clients by Old Mutual Wealth remains committed to serving as a trusted wealth and investment manager to high-net-worth clients and their financial advisors, offering a platform to structure, preserve, grow and leverage wealth across multiple geographies and generations. DM/BM