Mauritius is making waves as an emerging powerhouse in the realm of international finance, particularly in the provision of wealth management services across Africa. With its strategic location, favourable tax policies, and robust regulatory framework, Mauritius has become an attractive destination for high net worth individuals (HNWIs) seeking to safeguard and grow their wealth.
In recent years, Mauritius has positioned itself as a premier financial centre, offering a wide array of services tailored to the needs of HNWIs. One of its key attractions is its favorable tax regime, characterized by low or zero taxes on capital gains, dividends, and inheritance. This tax-friendly environment, coupled with its stable political climate and strong legal system based on English common law, has made Mauritius an appealing jurisdiction for wealth management activities from traditional service providers such as banks and more recently from independent asset managers.
Traditional banks have historically dominated the wealth management space, leveraging their extensive networks, resources, and brand reputation to cater to the needs of HNWIs. While these institutions provide a range of services, such as investment advisory and portfolio management, their offerings often follow standardized approaches that may not fully align with the unique preferences and objectives of individual clients and cannot fully detach themselves from the need to sell their own products to clients.
In contrast, independent asset managers in Mauritius are challenging the status quo by offering boutique services tailored to the specific requirements and preferences of their clients. Freed from the constraints of institutional bureaucracy and product-driven agendas, independent asset managers have the flexibility to craft bespoke investment strategies, select best-in-class products, and provide unbiased advice that prioritizes client interests above all else.
Independent asset managers (IAMs) operate independently of banking institutions, allowing them to offer unbiased advice and objective recommendations that are solely focused on achieving client goals. This independence fosters trust and transparency, as clients have confidence that their interests always come first.
IAMs also tend to prioritize building long-term relationships with their clients, offering attentive, personalized service that goes beyond mere transactional interactions. By understanding clients’ aspirations, concerns, and evolving needs, IAMs can provide proactive advice and guidance that fosters financial confidence and peace of mind.
IAMs also have the agility to tailor investment strategies and asset allocations to meet the unique needs, risk tolerances, and preferences of individual clients. Whether clients seek capital preservation, income generation, or growth opportunities, IAMs can design personalized solutions that align with their objectives.
This new breed of wealth management industry, offering a compelling alternative to traditional banking institutions. With their focus on independence, customization, and client-centric service, IAMs are well-positioned to continue disrupting the status quo and meet the evolving needs of HNWIs in Mauritius and beyond.
This growing wealth management industry is driving a higher level of sophistication and a deeper talent pool within the industry and I expect that this will act as a platform for the wealth management companies to grow into international jurisdictions and offer their services across the African continent where this type of service is needed and where the capabilities / expertise are not as experienced or not available. We are already seeing this starting to happen in pockets with growing focus on the South African market as wealth managers try to capture the wealth of clients looking to move to Mauritius.
Our approach at Orange Eight looks to take this wealth management service a step further. We recognize that true wealth extends far beyond investment portfolios; it encompasses properties, businesses, and a myriad of untapped opportunities. For high net worth individuals (HNWIs), their businesses often hold untapped potential, far surpassing the value of their investment portfolios. That’s where we step in, pioneering an approach that transcends traditional wealth management paradigms.
It’s about more than just managing wealth; it’s about growing it in a meaningful way. We do this not only by carefully assessing the investment opportunities and risk in international financial markets but also by delving beyond those traditional boundaries to unlock additional possibilities. If we are able to add value to their business by introducing them to new partners, new opportunities, or help the secure debt at cheaper levels than they can, and enable them to have access to specific deals – then we truly are growing their wealth and building a valued and trusted relationship.
