world of private clients 2020

FOREWORD | OUR RESEARCH | 2020 AND COVID-19 | 1. TRANSPARENCY | 2. RELOCATION | 3. FAMILY & GENERATIONAL WEALTH | 4. THE ADVISER OF THE FUTURE | ABOUT BDO

FOREWORD: THOUGHTFUL DECISION MAKING AMIDST CHANGE

Private clients have always had to find a careful balance of risk and opportunity in the face of uncertainty and change. This year this has become more true than ever. Wealthy individuals and their advisers face a new, more complex global landscape. Longstanding generational changes, huge economic upheaval and new socio- cultural thinking have collided to create an unprecedented global challenge. We are sure that almost every one of us has been personally affected by the events of this year. In many respects, 2020 represents a perfect storm of short and long-term disruption. The seismic effects of COVID-19 continue to rock the global economy. Meanwhile, our research shows that generational change is driving new attitudes to the role private wealth and its responsibilities in delivering beneficial social and environmental outcomes.

X How wealthy individuals are placing more weight on socio-political stability and lifestyle factors in relocation strategies X How new generations are driving an increased focus on environmental, social and governance (ESG) issues and philanthropy despite some scepticism around rhetoric versus impact X How wealth owners are frequently the source of their own problems when it comes to succession planning X Why the HNWI community expect their advisers become more agile, more multi-skilled and more technologically-savvy This is the first instalment of an ongoing initiative to provide actionable intelligence that helps wealthy individuals and their advisers confidently plan and implement successful strategies. Our ongoing research will track how the challenges and opportunities they face evolve over time. We hope that you find this report insightful and useful as you prepare for the future. We also hope that next 12 to 18 months are more positive and bring us recovery, renewed growth and prosperity.

UNDERSTANDING THE SHIFTING LANDSCAPE AROUND US Against this tumultuous backdrop, we have undertaken in-depth research in order to best understand how wealthy individuals and their advisers are meeting this myriad of challenges and preparing for what the next 12 months may bring. The research, underpinned by quantitative and qualitative analysis in more than 25 jurisdictions, has given us invaluable insights that we are delighted to be able to share with you. These include: X How an initial wait-and-see attitude to COVID-19 and trends is giving way to detailed and actionable plans X The extent to which increases in international taxation are expected X How wealth is seeking more diverse portfolios and new investment opportunities X How the competing demands of transparency and privacy and reputation management are coming to a head

wendy walton head of global private client services | bdo uk

To succeed in our business and personal lives, we must understand and adapt to change, all the while retaining clarity around our principles and long-term objectives. We feel that the need for thoughtful decision-making and being mindful of how best to adapt has never been greater.

WORLD OF PRIVATE CLIENTS | NOVEMBER 2020 3

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