_A question of priorities: education, education, education

The results of The Wealth Report Attitudes Survey, which this year is based on responses from almost 900 of the world’s leading private bankers and wealth managers, offer an annual window on the issues that are influencing UHNWI investment and lifestyle decisions.

All the survey results are collated on a regional basis in the Databank section of the report, but over the next few pages we use market-leading data and insights to delve deeper into some of the areas covered by the survey that are receiving increasing attention from the wealth industry: travel, education and philanthropy.

Education, education, education

Good schools are a key driver of the housing market and their presence often helps to push up local property prices, but UHNWIs from a growing number of countries are choosing to educate their children overseas.

For example, almost half of this year’s Attitudes Survey respondents with clients in Africa said wealthy families were becoming more likely to look abroad for a good school. For Latin America, the figure was 45%, the Middle East 40% and Asia 38%.

Although the US, Switzerland, Australia and a number of other countries all attract students from overseas, the UK’s private boarding schools are still seen as the gold standard by many, according to specialist education advisors who help UHNWIs find the right schools for their children.

Data published by the UK’s Independent Schools Council, which accounts for around 80% of the total number of pupils in independent schools, shows global demand rising strongly over the past 10 years, in particular from China but also from Africa and Russia.

Currency, quality of life and access to the best universities are the key trends boosting demand for a British education, says Ed Richardson, Director of Education at Keystone Tutors.

“Ambitious families in Singapore have traditionally sent their children to schools in the US, not necessarily because they think they are better, but because of the cost. Now, they are telling me that the fall in the value of the pound is making the UK look much better value. That sentiment will be echoed in many other places.”

Although a number of franchised versions of wellknown UK schools, such as Harrow, Marlborough, Repton and Dulwich College, have opened in Asia and the Middle East, the genuine article is still the preferred choice for those who can afford it, according to Mr Richardson.

“It’s not just about the teaching, it’s about quality of life and the extent of extra-curricular activities available. Certainly in China there is a feeling that if you’re going to spend money on Western luxuries it is better to buy them in the West. More credit will be given to Harrow itself than Harrow Beijing.”

"Middle Eastern families also value the fact that British schools provide access to the best universities in both the UK and the US", he adds. “There is a feeling that schools in the US are really only focused on getting people into US universities.”

William Petty, of advisor Bonas MacFarlane, has observed a number of other regional trends. “While growth in the Russian market has slowed right down over the past few years, I am seeing a sharp rise in the urgency of enquiries from Turkish families,” he says.

“In September last year people were expressing interest, but by December it was: ‘Can we come right now?’ Some people are looking for boarding schools, but others are looking at London day schools with the whole family coming over.”

Although the number of students from the Indian sub-continent is lower than other parts of Asia, Mr Petty expects a rise in demand from India and Pakistan over the coming years.

Ironically, he says, one of the first questions many overseas parents ask about potential schools is, “How many people from my own country are already there?”

“They are very keen to make sure that the school retains a traditional British ethos,” he explains.

Conscious of this, most schools try to keep the level of overseas students at under 20%, he says. They are also keen to ensure a diverse mix. “In a world where business is becoming increasingly global, having your children make friends with people from lots of different nationalities is considered very attractive.”

Click to enlarge