Wealth Without Borders
London is the city that matters most to global high-net-worth individuals.”
The Wealth Report 2012
Why is 21st century wealth so much more fluid than in, say, the 1980s? The spread of English as the global language of business has substantially lubricated the movement of wealth. Global communications have also played a part. The internet and mobile telecommunication means that the business traveler can now stay in touch wherever they are in the world. The rise of multinationals means that intra-company promotions now result in expatriate moves for many high echelon employees. More importantly, globalisation of finance has had the result that key financial hubs (New York, Tokyo and especially London) are now critical, regardless of parental company. Take the 2009 IPO of major silver mining company Fresnillo. The company is Mexican, yet it chose to float on the LSE.
These factors have benefitted many hubs of regional wealth, but London is the city that matters most to global high-net-worth individuals, according to research published in The Wealth Report 2012. Global property specialist Knight Frank predicts that this situation will continue for at least the next decade. Whilst New York, Beijing, Shanghai, Paris, Hong Kong, Miami and Singapore have all prospered through the mobility of international wealth, for now it seems that London has the financial base, the culture, the language, the property and the security that the wealthy require.