Investment Continuity Strategies for Globally Mobile Clients. Borderless Solutions for Continuous Investing.
A 2025 Henley Global report predicted a record 142,000 millionaires were expected to relocate internationally that same year, a figure which would equate to nearly triple the number seen a decade ago!
From international careers and business expansion to retirement migration and family relocation, global mobility among high net worth individuals (HNWIs) is no longer an exception, but rather the norm. However, this can create both a challenge and an opportunity for wealth managers; as client mobility increases, so does the demand for advice that extends beyond purely investment performance.
The Challenges for Wealth Managers
Globally mobile clients Increasingly require guidance on an expanding range of issues, which left unaddressed can materially impact long-term wealth preservation. These issues include:
Tax exposure: Varying tax rules across countries can expose clients to double taxation, exit taxes and unexpected financial obligations. Additionally, extended stays in a particular jurisdiction may unintentionally trigger tax residency status.
Currency risk: When liabilities such as mortgages or business loans are denominated in one currency while income streams are earned in another, clients can face significant exposure to exchange rate fluctuations.
Regulatory fragmentation: De risking policies adopted by global banks can suddenly restrict cross border liquidity, leaving clients with limited access to funds. At the same time, wealth managers must navigate various securities laws, reporting obligations and investment restrictions that vary across jurisdictions.
Succession planning: Estate laws vary widely across jurisdictions, creating significant complexity in structuring inheritances. Differences between civil law and common law regimes can result in certain estate arrangements becoming invalid which can expose families to unintended disputes or tax liabilities.
The Opportunities for Wealth Managers
The requirements from globally mobile clients are driving firms to expand beyond traditional portfolio management and into custody, compliance, FX and geopolitical risk advisory services.
Cross‑border expertise: Wealth Managers should aim to simplify the complex, by guiding clients through different tax systems, legal frameworks and regulatory rules.
Global custody and reporting: Providing clients with a single custody solution across multiple jurisdictions can ensure transparency and efficiency.
Lifestyle integration: Financial planning that accounts for mobility, such as schooling abroad, healthcare access or property ownership delivers a more complete and holistic service that extends beyond only investment returns.
Currency risk management: Offering advanced FX hedging and liability alignment can protect wealth from volatility and demonstrate proactive risks management.
Investment Continuity Solutions for Globally Mobile Clients
We’ve highlighted how cross‑border planning brings with it a wide spectrum of challenges and opportunities. Just as diverse a spectrum, are the models available to support investment continuity and long-term value across different jurisdictions.
Global Custody Solutions: Centralised custody platforms provide seamless asset consolidation, reporting and compliance oversight across jurisdictions.
Tax efficient structures: Vehicles such as trusts, foundations or family offices can mitigate tax exposure and simplify estate planning.
Currency Diversification: Allocating across multiple currencies and using hedging instruments reduces volatility in global portfolios.
Digital wealth platforms: Technology enables real-time portfolio monitoring, cross‑border reporting and client engagement regardless of location.
Transportable investment Solutions: UCITS and ETFs are globally recognized instruments that remain portable across borders which can reduce disruption.
Introducing Capital International’s Fully Transportable Investment Solution
Transportable investment solutions are becoming increasingly important; Capital International’s Kinesis Service is a fully portable investment solution designed to provide long-term cross-jurisdictional investment access, support the retention of AUM and can assist in addressing cross-border considerations.
Kinesis Service is cost-effective and allows your clients to invest in a Principal Contract that references the value of the chosen Strategy. Within the Strategy you, as the investment manager, have access to the wide range of assets available on Capital International’s investment platform, providing flexibility to change the underlying investments to reflect market movements and opportunities.
Key Benefits include:
- Situs in the Isle of Man
- Income and profits roll up in the Strategy
- Principal Contracts referencing the Strategy, may provide tax advantage to your clients
- Flexibility to create bespoke strategies for individual clients
- Ability to create bespoke group strategies for multiple clients
Additionally, the Kinesis Service can simplify your client’s tax administration and cut down paperwork for both you and your client.
As client mobility continues to reshape the global wealth landscape, wealth managers face the challenge of navigating increasingly complex cross-border regulations while maintaining uninterrupted investment strategies for their clients. At the same time, globally mobile investors present a significant opportunity for wealth managers to deepen relationships by offering investment solutions that adapt to life events.
Investment Continuity Solutions can help bridge these challenges by providing a framework that supports long-term investment access across jurisdictions, providing wealth managers the options to offer greater flexibility and continuity, whilst supporting cross-border wealth planning objectives.
Want to learn more?
If you or your clients are contemplating cross-border risks and potential situs tax exposure, Capital International’s Kinesis Service offers a cost effective, practical and flexible solution.
To find out more about how Capital International may assist, please contact platform@capital-iom.com
The views, thoughts and opinions expressed within this article are those of the author, and not those of Capital International Group Limited (Group) and/or any of its subsidiary companies and as such are neither given nor endorsed by the Group or any company within the Group.
Information in this article does not constitute investment advice or an offer or an invitation by or on behalf of any company within the Group to buy or sell any product or security or to make a bank deposit. Any reference to past performance is not necessarily a guide to the future. The value of investments may go down as well as up and may be adversely affected by currency fluctuations. The Group, its subsidiary companies, clients, and officers may have a position in, or engage in transactions in any of the investments mentioned. Opinions constitute views as at the date of issue thereof and are subject to change.
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