Notes

How wealth management firms can prepare for turbulent times [Farnoush Farsiar]
Generational shifts Global mobility. Technology transformation. Farnoush Farsiar, EU Today writes that these are only a few of many key changes that have affected family offices, and in the end threatened their operating structures and methods.

Family offices cater to an increasingly tech-savvy, younger and mobile generation more often. The economic crisis and the democratisation of trading through online tools have made all clients, irrespective of age, more interested in their own investment portfolios which means they are looking to gain more knowledge and be more involved as well as losing the desire to have discretionary portfolios that are managed by arm's length.

These changes occur in a critical time of political and economic crisis. If an office attempts to keep its old ways of doing business, they'll soon be abandoned by those they meant to advise. They need to change and become more innovative with their approach to investment management in order to offer a true benefit proposition to UHNWIs.

Family offices vary hugely in their size and scope, however irrespective of this they should be focusing on agility and streamlining their processes rather than striving to be specialists in all things. The best customer service will be provided by a small group of advisors that are able to rapidly implement new technology and also bring in external experts when required. https://www.meetingwithpia.org/members/farnoush-farsiar1gbbaa22/activity/432401/ These changes will result in the blurring of family offices and private banking. The most successful firms will keep the trust and loyalty of family offices, while staying on top of trends in technology and sourcing deals.

The success will come from the ability to capitalize on more traditional, network and reputation-based strategies for deal sourcing while also employing online strategies to find deals and opportunities. Deal sourcing platforms online are only one tool wealth managers and agile private offices can easily install in contrast to the large, cumbersome banks, who are burdened by bureaucratic bureaucracy of large firms. The platform lets dealmakers easily review and access a range of deals simultaneously which could save them time and money.

Wealthica and other dashboard services such as Wealthica are also changing the way family offices interact directly with their clients. They consolidate investment automatically from multiple sources and bring clients into daily communication with their investment portfolios. Farnoush Farsiar This is an enormous improvement from the past when wealth managers only providing periodic updates on the status of their clients' funds.

Of course the tools are just that - the means by which wealth managers can enhance their efficiency and speed at the way they work. Their investments strategy is what is most important. The most effective strategy is to combine both the old and new. This means you can continue to look for bargains on real estate but also explore investments in areas such as the science of climate change or food security. Farnoush Farsiar Impact investing has definitely "arrived" in the family office industry. According to the UBS Global Family Office Report 2018 one-third of family businesses are currently involved in impact investments, with most expecting to grow the amount of involvement they have in the coming years. Farnoush Farsiar There are a myriad of issues with this area, including the challenge in assessing impact and conducting due diligence. However the next generation of UHNWIs, and HNWIs, are likely to expect family offices to determine and secure investments in this area. Plato Capital is a boutique bank that provides investment advice. It draws on the experience of its founders in large banks, family offices and the tech industry to provide entrepreneurs with investment advice. Our network and personal knowledge of the local region allows our clients to manage risk effectively and increase their capital returns.

Wealth managers can thrive in turbulent times by blending past and the future by adapting to the changing needs of the young generation and taking risks in their own frameworks. https://www.thegazette.co.uk/company/10947406
Read More: https://www.aacc21stcenturycenter.org/forums/users/farnoush-farsiar8eddcc33/