The Straits Times quotes Kurt Rademacher and Marcus Yorke-Long on trends amongst business owners in Asia following the US Election
According to The Straits Times, more Asian business owners and large family offices are increasing their allocations to US equities and real estate, reportedly fuelled by optimism over US President-elect Donald Trump’s pro-business policies.
As a result, they are seeking help to structure their US investments and address any tax compliance issues ahead of Trump’s inauguration, scheduled on Jan 20, 2025.
The Straits Times interviewed two individuals from our Firm for their views.
Kurt Rademacher, Partner and Head of US Private Client, begins:
A number of our clients are allocating more of their assets to US real estate and equities because one of the core fundamental tenets of what Trump wants to do is reduce the corporate red tape as well as corporate tax rate from 21 per cent to 15 per cent.
"That’s going to help corporate earnings after tax, which could drive up stock prices. If businesses are doing better, there’s more money in people’s pockets. That would potentially also increase the real estate market as a rising tide lifts all boats.
Kurt goes on to explain that many regional clients are seeking help to structure their US investments and address any US tax compliance issues, and that many of the ultra high-net-worth (UHNW) families from China, Indonesia, Taiwan and the Philippines have some US connections. Most of them have children studying there, are working on Wall Street or are married to an American.
We step in and try to manage the tax situation for them. For those few clients in the region who don’t have US family members, they all have US equity exposure or US real estate exposure, and they too need advice.
Marcus Yorke Long, Head of Private Office adds that Trump’s victory provides direction, which in turn underpins investor confidence as there is now an element of predictability that can be applied to global markets and geopolitics. Additionally, political change provides an opportunity for UHNWs to review their global structures and tax mitigation strategies.
"Mr Trump has a very strong voice, and he now also has a very strong mandate. Investors and families tend to find it somewhat easier to plot their path when there are elements of conviction and direction as opposed to uncertainty and mixed messages,” he explains.
Read the full article in The Straits Times here.
