Blog 13: Europe's old wealth seeks new home in Asia

              The Spinola family of Genoa, those who were once friends and business partners with Christopher Columbus are now moving their money and ties to Asia.  Many ultra-affluent families are moving their assets to Singapore into family offices.  There is a pull to look east when preserving fortune, managing trusts and investments.  These are no small investments.  Families are bringing billions of dollars in assets with them to Singapore.  Singapore is providing many different opportunities with regards to the investment of money which include low tax rates and the smooth movement of money among other perks.  Singapore is also offering benefits for those investors to spend their money and to unwind.  There is a pull to move money and invest money in Southeast Asia because the prospects are good, in comparison to the weak economies of Europe and the United States.  Singapore is becoming a financial center for family money.  It is providing new ways for families to manage their wealth and providing greater financial technology.  These families are generally investing in things like energy, commodities, healthcare, and biotechnology stocks.

                Old family money is being put to use in new ways.  Money is now being invested in other parts of the world.  Families in Europe are investing their family money into Singapore because they can see its potential.  As a result of the weak economies in Europe and the United States, families are looking elsewhere to invest their assets.  This is important because more and more money is now in Southeast Asia.  Where economies are already doing well, investors are choosing to place more money and more faith into these countries.  Taking their money and assets out of the current country and moving them elsewhere can only place a hardship on the former country.  If the reason for these families investing their money into Southeast Asian countries is because of the economy, how will the current economy in the other countries fare?  I realize that it is a business decision when moving assets; however it does not benefit their own country when moving their investments.  Struggling economies will only continue to struggle if this attitude and these actions persist by families.  

http://www.reuters.com/article/2012/04/17/us-wealth-families-asia-idUSBRE83G0UP20120417