The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The 2012 decline in Latin America’s high net worth statistics is “no cause for alarm” in the Bahamian financial services industry, with overall global growth presenting “more opportunities” for this nation.

Latin America was the only region cited by the The World Wealth Report 2013 (WWR), released by Capgemini and RBC Wealth Management, as having suffered a decline in both high net worth individuals and their numbers during 2012.

The Bahamas has focused heavily on targeting Latin America, especially Brazil, with its marketing initiatives in recent years, bit Aliya Allen, the Bahamas Financial Services Board’s (BFSB) chief executive, pointed out that domestic market challenges created opportunities for the Bahamas.

“I don’t think anyone would have questioned identifying those markets as priority areas,” Ms Allen told Tribune Business. “It’s almost a no-brainer.

“Even when we see markets that are challenged domestically by their own social problems, lack of infrastructure that, too, can offer an opportunity simply because people need to find ways to diversify from a number of risks, political or otherwise.”

With the Bahamas able to provide a secure destination for high net worth assets, Ms Allen said Latin America’s 2012 decline in the WWR was likely “cyclical”.

“I don’t think it’s cause for alarm,” she added, ‘and I’ve never been a proponent of putting all our eggs in one basket. It means trying to develop other markets as well.

“But the need in Latin America to utilise places like the Bahamas continues. There may be less high net worths and wealth; it doesn’t necessarily mean there’s less opportunity.”

The WWR indicated the Bahamas, and its private wealth management industry, still has much to play for with the collective wealth of the world’s high net worth individuals rising 10 per cent to $46.2 trillion in 2012.

“The growth that we’ve been seeing over the last year to two years means that there is more wealth to attract to the Bahamas, and thus more opportunity for the Bahamas,” Ms Allen agreed.

She emphasised that the Bahamas was a client-focused jurisdiction, providing a fell menu of product options to serve the needs of high net worth clients, as opposed to the likes of the Cayman Islands and Bermuda, which were largely product specialists on hedge funds and insurance, respectively.

“I think we’ve identified the clients we want to serve,” Ms Allen told Tribune Business, “and now we’re saying: ‘What do those clients need?

“We’re trying to serve that upper echelon of wealthy clients, and the growth of the Bahamas and financial services in the Bahamas will depend on how well we serve and satisfy their needs.”