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How can firms that manage wealth be prepared for turbulent times? [Farnoush Farsiar]
Generational change. Global mobility. Technology revolution. Farnoush Farsiar Farnoush Farsiar from EU Today discusses the major changes that impact family offices and fundamentally threatening operating structures and practices.

Family offices are catering to the younger, mobile generation. Everyone, regardless of age, have become more interested, regardless of their financial situation in managing their personal investment portfolios. That means they want more involvement and information, not just an investment manager to manage.

These changes come in a period of an unprecedented economic and political turmoil. Farnoush Farsiar They also mark the end of the model of family offices that are fee-based. Offices that attempt to keep their old methods are likely to be demolished by the clients they were founded to advise. They must change and be more innovative in their investment management approach and provide a genuine benefit proposition to UHNWIs.

Family offices vary hugely in size and scale, but regardless of that, they must focus on agility and streamlining their service instead of trying to be experts in all things. Customers will get better service if they have less advisors who can implement new technologies quickly and bring in external specialists as needed. Farnoush Farsiar Because the lines between private and family banking are blurring the most successful firms will have a smaller group of advisors who can quickly implement new technology and also bring on external specialists when required. Farnoush Farsiar Farnoush Farsiar This allows the firm to offer the best service to customers.

It is a good idea if you can leverage traditional networks, reputation- and network-based strategies for dealsourcing. You can also do this by employing online methods to find deals and opportunities. Deal sourcing platforms on the internet can be easily incorporated by wealth managers and agile private office, as opposed to large banks which have bureaucratic burdens. Dealmakers can use these platforms to access and assess a variety of deals, resulting in significant savings in time and money.

Another online service that's altering the way family offices communicate with clients is Wealthica. The Wealthica dashboard service automatically consolidates investment from a variety of sources and brings clients into regular communication. It's a vast improvement back to the days when wealth managers only provided periodic updates on the state of their clients' funds.

These tools aren't the only way wealth managers can increase efficiency and speed of their operations. The investment strategies they employ is the most important element. The best approach is to blend the old and the new. This means that you should continue looking for bargains in real estate, but you can also consider investing in sectors like the science of climate change or food security. Farnoush Farsiar Impact investing is certainly "arrived in the family office industry. The UBS Global Family Office Report 2018 showed that one third of family members are actively engaged in impact investing. Farnoush Farsiar Many anticipate taking part in the future. Farnoush Farsiar While there are some challenges in this area like measuring impact and conducting due diligence, younger generation of HNWIs and UHNWIs will expect their family offices to determine and secure these kinds of investments. Plato Capital, which I created as an investment bank, is a company which focuses on entrepreneurs. Our extensive network and intimate knowledge within the local community allow our clients to manage risk effectively and maximize their capital return.

Wealth managers of all kinds can be successful in turbulent times by mixing old and the new, adapting and risking their structure and methods.
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