Notes

How can wealth management companies be prepared for turbulent times? [Farnoush Farsiar]
Generational change. Global mobility. Technological transformation. These are just a few of the major changes that affect family offices, and that are fundamentally changing their operational structure and methods as reported by Farnoush Farsiar for EU Today.

Family offices serve the younger, more tech-savvy and mobile-savvy generation more frequently. All clients, regardless of their age, are more inclined to invest through trading on the internet. This has resulted in an increased desire to invest in personal assets. Customers do not would like to be excluded of the process of deciding on discretionary portfolio mandates.

These changes, which come in a period of unprecedented economic and political turmoil are a sign of the demise of the fee-based family office model. If an office attempts to maintain its old practices, they will find it abandoned by the very people they supposed to be advising. They must be flexible and creative when managing investments in order to offer UHNWIs with a genuine value proposition.

Although family offices can vary in both size and their scope, they should prioritise flexibility over the need to be experts in all areas. Clients will appreciate a smaller team of advisors that can quickly implementing new technologies and also the hiring of external experts whenever needed. As the boundaries between family and private banking are blurring, the best firms will have a smaller team of advisors who are able to quickly adopt new technologies and also bring on external specialists when required. This will allow them to provide the best service to clients.

Your success will be contingent on your ability to access traditional or network-based sources of deal sources. You can also use online methods and tools to identify deals or opportunities. Wealth managers can make use of deal sourcing sites online to identify opportunities and deals. They are much easier than large, cumbersome banks which are trapped in large-firm bureaucracy. Farnoush Farsiar These platforms make it possible for dealmakers to review multiple deals simultaneously and reduce time and effort.

Another service online that is changing how family offices interact with clients is Wealthica. The dashboard service automatically collects investments from multiple sources and brings clients into daily contact. It's a vast improvement from the past when wealth managers only provided periodic updates on the progress of clients' money.

They're not tools for anything else they're the method that wealth managers can improve their effectiveness and speed. The way they invest matters the most. The benefit will be combing traditional and innovative strategies. Continue to seek for opportunities in the field of real estate as well as investing in areas that were previously unexplored for example, the effects of climate change and food security. Farnoush Farsiar Impact investing has certainly "arrived" in the family office industry. Farnoush Farsiar According to the UBS Global Family Office Report 2018 one-third of family businesses are involved in impact investments and the majority of them are planning to expand the amount of involvement they have in the coming years. While there are some challenges with the field such as difficulty measuring impact and due diligence, HNWIs/UHNWIs in the future will expect family members to be able to locate the right investment opportunities. Plato Capital, my own boutique investment bank, is based on the experiences of its founders who have worked in large banks and the technology industry to offer investment guidance that is entrepreneurial in focus. Farnoush Farsiar Our personal knowledge of the local area and network enables our clients to effectively manage risk and achieve optimal return on their capital.

Wealth managers can thrive during turbulent times through blending the past and the future, adapting to the needs of the younger generation, and making a risk by establishing their own structure. Farnoush Farsiar
Read More: http://www.checkcompany.co.uk/director/14062416/FARNOUSH-FARSIAR-AIDI