EXECUTIVE SUMMARY HNW offshore investment is driven by a multitude of reasons Key findings Critical success factors GLOBAL TRENDS DRIVING HNW OFFSHORE INVESTMENTS There are multiple drivers for HNW offshore investment Other drivers include better returns offshore, concerns over currency volatility, and political or economic instability Significant regional differences exist in the motivations for offshore investment HNW offshore investment is driven by a multitude of factors DETAILED DRIVER ANALYSIS Country-level analysis reveals greater insight into HNW individuals' motivations for offshore investment Driver one: HNW individuals invest offshore to gain access to a broader and better range of investments HNW investors in developing markets invest offshore to gain access to a wider range of financial products A broader range of investment options allows HNW investors to achieve portfolio diversification benefits Driver two: HNW individuals resident in countries with complex tax systems look for tax efficiency offshore HNW investors in the West seek tax efficiency when investing offshore Tax exchange agreements mean offshore investing for tax purposes has become more restrictive Driver three: HNW investors are betting on better returns offshore Low interest rates in Europe will continue to motivate investors to hold wealth offshore Driver four: Currency volatility as a driver for offshore investments is becoming more important South African investors offshore to hedge against the depreciation of the rand Driver five: political and economic instability is a strong driver for HNW individuals who fear for the long-term future of their assets Countries where political or economic instability is less of a concern benefit from strong HNW wealth inflows APPENDIX Abbreviations and acronyms Supplementary data Definitions Affluent CRS Double taxation convention (DTC) HNW Liquid assets Mass affluent Residency Exchange of information TIEAs Methodology Verdict Financial's 2015 Global Wealth Managers Survey Bibliography Further reading About Verdict Financial Disclaimer

Table 1: HNW offshore investment drivers in the Americas, 2015 Table 2: HNW offshore investment drivers in Asia Pacific, 2015 Table 3: HNW offshore investment drivers in Central and Eastern Europe, 2015 Table 4: HNW offshore investment drivers in the Middle East and Africa, 2015 Table 5: HNW offshore investment drivers in Western Europe, 2015 Figure 1: Access to a greater range of investments is the primary driver for offshore investments Figure 2: Reasons for investing offshore vary greatly by region Figure 3: A better range of investment options is one of the main drivers behind offshore investments in the majority of countries surveyed Figure 4: Tax efficiency is one of the main drivers behind offshore investments for many countries with high taxation Figure 5: Hundreds of bilateral TIEAs have been signed since the financial crisis Figure 6: Better returns offshore are motivating investors to internationalize their portfolios Figure 7: Funds that provide international exposure allow for further diversification Figure 8: Currency volatility left investors concerned in 2015 Figure 9: Currency volatility as a driver for offshore investments is becoming more important Figure 10: The UK is the preferred booking center among South African HNW investors Figure 11: Investec provides non-resident mortgages to South African HNW investors Figure 12: UBS targets international HNW entrepreneurs with targeted offers Figure 13: Political and economic instability figures strongly as a driver for offshore investments in a number of countries