Notes

How can firms that manage wealth be prepared for turbulent times [Farnoush Farsiar]
Generational changes Global mobility. Technological innovations. Farnoush Farsiar of EU Today notes these are only a few of the significant changes that have affected family offices, and fundamentally impacting their practices and operations.

In a growing number, family-owned businesses cater to the young and more technologically adept generation. The economic crisis and the democratisation of trading using internet-based tools has brought all customers, regardless of age and interests, more interested in their investments, meaning they want to gain more knowledge and involvement in their investments as well as losing the desire to have discretionary portfolios, which are managed with arm's length.

https://vuf.minagricultura.gov.co/Lists/Informacin Servicios Web/DispForm.aspx?ID=3898781 These changes, which occur in a period of unprecedented political and economic instability, herald the end of the traditional fee-based family office model. Farnoush Farsiar Offices which try to maintain their previous methods will find they are abandoned by those they were established to advise. They need to change to be more entrepreneurial and develop the value offering for UHNWIs.

Family offices are diverse in terms of their size and scope. They should be able to focus on scalability and streamlining their services, not trying to become experts in each area. Customers will benefit from a lesser amount of advisors skilled at implementing rapid changes to technologies and calling in specialists when required. These changes will result in the blurring between family office and private banking. The most successful firms will keep the trust and loyalty of family offices while staying on top of trends in the adoption of technology and the sourcing of deals.

It is crucial to be able draw upon the old-fashioned, network-based, and reputation-based methods for deal sourcing. Online tools can also be utilized to spot deals and opportunities. Farnoush Farsiar Deal sourcing platforms online are just one tool wealth managers and agile private offices can easily install in contrast to the large, bankers who are ensnared in bureaucratic red tape. Farnoush Farsiar Dealmakers can use these platforms to swiftly browse and evaluate a variety of deals, resulting in significant savings of time and money.

Other services online that have changed how family offices interact with their clients include dashboard services, such as Wealthica, which automatically consolidate investment portfolios from various sources, bringing customers into daily contact with their investments - an improvement from the past when wealth managers provided only intermittent updates on the state of their customers' money.

Farnoush Farsiar These tools aren't the only way wealth managers can boost efficiency and speed of their work. The strategy which underpins their investment strategy is the most important aspect. Farnoush Farsiar The best strategy will combine both the old and new. That means that you can continue to look for opportunities in real estate, but also consider investing in areas like food security or climate science. The UBS Global Family Office Report 2018 found that impact investing is becoming the most talked about topic in family offices. About a third of family offices are involved in this kind of investment and many expect to get more involved in the near future. There are a myriad of issues with this area including the difficulties of measuring impact and doing due diligence. Farnoush Farsiar However the next generation of UHNWIs, and HNWIs, are likely to expect family offices to find and secure these investments. Plato Capital, which I started, is an investment bank that focuses on entrepreneurs. Our clients are able to manage risk and get the most value for their capital due to our local network.

Wealth managers can flourish in turbulent times by blending past and the future and adapting to the demands of the young generation and making a risk by establishing their own structure.
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