While international pressure is increasing on offshores financial centers in order to reduce tax fraud and money laundering, the last survey released by Deloitte consulting firm highlights the fact that only a few investors have been removing their assets from countries offering tax advantages. Indeed, the asset management international hierarchy did not face any significant movements since 2008.
In 2014, Switzeland is still number one with more than 4000 billion Swiss Franc under management. Considering this astonishing amount, less than one half corresponds to offshore managed Swiss Franc while the other half belongs to assets managed within the country. If we compare these figures with the numbers we had in 2008, it appears that the onshore/ offshore ratio have been highly increasing. In fact, 42% of the total amount were onshore managed assets in 2008 while this percentage evolves to almost 50% in 2014.
This trend can be explained by the evolution of the Swiss regulation. Indeed, the country recently announced that it will definitely abandon the banking secrecy in 2018. Even if this new measure only concerns non-resident investing money in Switzerland, it can partly explains the increasing ration onshore / offshore assets. As a direct consequence of this compelling regulation, individuals willing to benefit from the local tax advantages protected by banking secrecy will have to set up their main residence in Switzerland after 2018.
The world’s Top-6 countries specialised in asset management
1st : Switzerland – 2023 billion $
2nd : United Kingdom – 1518 billion $
3rd : United States of America – 1315 billion $
4th : Panama and Caribbean countries – 855 billion $
5th : Hong-Kong – 590 billion $
6th : Singapore – 435 billion $
In terms of evolution, Asian countries are facing the most significant growth since 2008 (Hong-Kong: +142% / Singapore +25%). In the same time, Carribean tax havens have been facing a gradual loss of their assets over the same period (-47%). Another interesting point to highlight: the impressive growth of the United States (+28%) that should overpass the United Kingdom in the coming years.
Overall, enriching and great news for Swiss asset managers considering good perspectives for development. Nevertheless, Swiss asset managers should promptly develop acquisition and loyalty strategies if they want to protect their know-how and expertise in order to remain competitive on the long run. To achieve this goal and to perfectly manage clients relationship, powerful tools such as high value added software should be implemented providing customised solutions for the client (such as reporting, mobile access etc).