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The shift to global wealth management
With the rise of global citizenship, managing wealth within national borders is no longer enough. As families diversify investments and move money offshore, they seek ways to mitigate risk and build sustainable portfolios. "It’s not just about returns, it’s about protecting against risk and ensuring that assets are spread across multiple currencies and jurisdictions," Minnaar explains.
Managing a well-structured portfolio across multiple geographies adds significant complexity, with diverse tax laws, currencies and regulations to navigate. “Many South African families now manage their wealth globally from the outset, as where you choose to live no longer dictates where you earn or accumulate assets, " Minnaar notes. “With family members often living, working, or studying abroad, the traditional approach to wealth management has shifted, and expert advice is crucial to avoid costly errors when making key decisions like offshore investments, acquiring alternative citizenship, or establishing international trusts.”
Thinking globally for future generations
As more South African businesses expand globally, building a balance sheet outside the country has become critical for long-term sustainability. "Managing offshore investments, trusts and taxes requires specialised knowledge, and at Private Clients by Old Mutual Wealth, we have the expertise to navigate these challenges," Minnaar adds.
The importance of integrated planning
For UHNW families, managing global wealth involves more than investments. It’s about creating tax-efficient structures, handling estate duties across borders and planning for the seamless transfer of wealth to future generations. "One of the biggest risks is assuming that tax, property and estate laws are the same everywhere,” Minnaar explains. “This can lead to substantial losses or prevent family members from accessing assets after a loved one passes.”
Preparing the next generation
One of the most critical aspects of wealth management for UHNW families is ensuring a smooth transition of wealth to future generations. "Transferring wealth is a huge responsibility,” says Minnaar. “If your parents or grandparents built their wealth through years of hard work, it’s vital for you and your siblings to become responsible custodians of that legacy."
A key part of successful intergenerational wealth management is understanding both the family’s history and the aspirations of the younger generation. "We work with our clients to understand where their wealth came from and where they want it to go. This allows us to manage and grow wealth across generations while giving the younger family members the freedom to put their own stamp on it," Minnaar explains. Whether it’s taking over the family business, diversifying investments or establishing a charitable foundation, Private Clients by Old Mutual Wealth supports the goals of the entire family.
A practical tool for managing intergenerational wealth is the family constitution. While family values and informal agreements often live in people's minds, putting these principles in writing brings clarity and structure to discussions that can otherwise be vague or subjective. "As more family members benefit from the wealth, the dynamics can become complex," says Minnaar. “A family constitution outlines the principles of wealth preservation, the roles of different family members, and the long-term goals for the family business or assets. When these principles are committed to paper, it reduces miscommunication, aligns future generations around common goals, and sets the tone for decision-making, conflict resolution and continuity of legacy. It’s a living document that evolves as circumstances change.”
The role of a family office
For many UHNW families, a family office provides a holistic solution to the complexities of managing global wealth. "Managing assets, trusts or investments across multiple jurisdictions requires a coordinated strategy,” Minnaar explains. “A family office integrates all these moving parts, reducing the risk of fragmented advice that often arises when various professionals work in silos.”
A family office oversees all aspects of wealth management for the entire family – not just the primary wealth generators. This includes managing businesses, trusts and other entities while supporting younger family members as they navigate their financial responsibilities. "Having a single point of contact ensures a cohesive strategy,” Minnaar says. “Whether it’s dealing with complex tax structures or simply paying an insurance premium, a family office not only streamlines affairs, but also ensures long-term alignment.” Minnaar also highlights a key concern: “The biggest risk we see is that structures, which may have been effective initially, can erode over time without proper ongoing oversight.”
Private Clients by Old Mutual Wealth’s family office, established in 1925, has managed wealth for four generations of families. "Our strong relationships with global experts and local professionals allow us to work seamlessly with families’ financial planners and other advisors to ensure that every aspect of our clients’ affairs is managed with precision and meticulous care," Minnaar adds.
A legacy for future generations
At the core of wealth management is the preservation of a family’s legacy. “Managing intergenerational wealth requires specialist planning and a deep understanding of the family’s goals, history and aspirations," says Minnaar. “Our team of expert advisors work together to provide a holistic solution, ensuring the family’s financial legacy is preserved and strengthened for future generations.”
With expert advice, global insight and a deep understanding of family dynamics, Private Clients by Old Mutual Wealth is uniquely positioned as a trusted partner for UHNW families navigating the complexities of global wealth management. DM/BM