Notes

How can firms that manage wealth be prepared for turbulent times? [Farnoush Farsiar]
Generational change. Global mobility. Technology revolution. These are just a few of the key changes impacting family offices, which is fundamentally challenging their operating structures and practices, writes Farnoush Farsiar for EU Today.

https://historyhub.history.gov/external-link.jspa?url=https://docs.house.gov/meetings/FA/FA14/20190626/109716/HHRG-116-FA14-Wstate-BromundT-20190626.pdf are geared towards the technologically advanced, mobile and younger generation. The financial crisis and democratisation of trading via online platforms have created a new generation of clients, regardless of age and interests, more interested in their investments, meaning they want to be more informed and be more involved and have lost the desire to have discretionary portfolios that are managed by an arm's length.

These changes happen during a time of severe economic and political turmoil. If they attempt to continue with their old methods and practices, they'll be relegated by the people they were created to advise. They must be agile and creative in managing investments in order to give UHNWIs with a true value proposition.

Family offices are available in all sizes and styles. They must prioritize efficiency and agility, as well as improving the efficiency of their services. The most efficient service for customers will be offered by a small group of advisors that are able to quickly implement new technologies, and bring on board external experts when needed. These changes have led to the blurring of the lines between private banks and family offices. Successful firms will continue to retain the loyalty of family offices and the level of trust they have while also being ahead of the curve in sourcing deals as well as embracing the latest technologies.

The ability to use both traditional, reputation-based and network-based methods to source deals will result in success. However, you can also make use of online methods to find opportunities and deals. Online deal sourcing platforms are just one of the tools which wealth managers and flexible private offices can easily install as opposed to large bankers who are mired in large-firm bureaucracy. Dealmakers are able to access and analyze large numbers of deals simultaneously this is a huge time and resource saving.

Another online service that is revolutionizing the way family offices communicate with their clients is Wealthica. https://devpost.com/kiddhussein350 collects investments from multiple sources and brings clients into regular contact. It's a far cry back to the days when wealth managers would only provide periodic updates on the progress of their clients' funds.

Of course they are only tools - the methods by which wealth managers can improve the efficiency and speed with the way they work. The most important factor is their investment strategy. The best strategy will combine the old and the new. That means that you should continue looking for opportunities on real estate however, you should also explore investments in areas like the science of climate change or food security. Impact investing is definitely "arrived" in the world of family offices - UBS Global Family Office Report 2018 found that one-third of family offices were engaged in impact investing. The majority of them anticipate to become more involved in future. There are a few issues regarding the field like the difficulty of measuring impact as well as due diligence HNWIs/UHNWIs in the future will expect family officers to be able to locate the right investment opportunities. Plato Capital, which I founded in 2004, is an investment banking institution that is focused on entrepreneurs. Our local experience and network allows us to assist our clients successfully reduce risk while increasing the capital return.

All types of wealth managers can continue to thrive in turbulent times if they mix the old and modern, are open to adapting to the changing needs of the market and are willing to take risks with their own structures.
Read More: https://devpost.com/kiddhussein350