Private View Blog: Wallabies and springboks thriving on Isle of Man
South African investors and expats see the Isle of Man as safe haven for both their asserts and their families
Did you know that the largest population of wallabies in the Northern Hemisphere are to be found on the Isle of Man?
I’m not talking about the Australian rugby team, rather the kangaroo-like marsupials.
There are around 160 bouncing around the island. The story goes that a pair escaped from a wildlife park following a storm back in the 1960s from which the colony originates. A wet and windy island in the middle of the Irish Sea might not seem the ideal environment for these animals, but apparently the climate is not dissimilar to Tasmania, from where they originate, while there are no natural predators to worry about.
To continue the rugby theme, springboks are also big business on the island, though this time I am referring to South Africans of a human nature.
Links between the Isle of Man and South Africa are well established, harking back to the mining industry, when many Manx miners emigrated to the country. And on a recent trip to the Isle of Man I was struck by home many wealth and asset managers were talking about how important a market the country was to their operations.
Capital International Group opened offices in Cape Town five years ago, and added another in Johannesburg this year.
“We have seen rapid growth there because South Africans, with all the political instability, and currency instability, look to put a much greater proportion of their domestic wealth outside of the country,” says Antony Kelsey, group commercial director at the firm.
He explains how several South African financial services firms have offshoots on the Isle of Man, pointing to the likes of Nedbank, Standard Bank, Investec and Old Mutual.
“We have gone the other way, opening down there, and they like that down there because they see us as a true offshore solution, whereas using a branch or subsidiary, well that might be offshore, but there is that perception that they aren’t.”
Manx firms opening offices in South Africa is something of a trend. Douglas-based stockbrokers and wealth manager Ramsey Crookall has recently done the same, establishing one in Cape Town in 2018.
“South Africa is quite unstable, the rand is depreciating, and there is a market down there that we are trying to tap into, and have been tapping into for many years, aiming at people trying to get their money offshore,” says Mark Wilkinson, business development manager at Ramsey Crookall.
But competition is fierce among the Manx firms, he explains, with several players having obtained licences, or in the process of doing so.
But for some South Africans, the Isle of Man has become more than just a safe home for their assets. Indeed the country has provided the largest number of migrants to the island from outside of the UK, and a big part of the attraction seems to be the safety and security of the place. On my recent trip, I think every single person I interviewed mentioned the fact that the annual HSBC Expat Survey recently ranked the island the best place to live in the UK, and 12th best in the world.
Those who have moved here wax lyrical about the lifestyle and how good a place it is to raise a family. The government is actively encouraging its own younger people, who may have left to go to university or to seek opportunities elsewhere, to consider moving home to settle down, but those from further afield are also welcome.
A visit to the Isle of Man can seem a little like stepping back in time, although the diversity and forward thinking nature of its economy proves there is much going on beneath the surface. But in a world of increasing geopolitical tensions and uncertainty, its attractions for those seeking a little stability are clear to see.
Elliot Smither is chief sub editor and senior writer at Professional Wealth Management. Follow him on Twitter @ElliotSmither
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