Notes

How can wealth management companies be ready for turbulent times? [Farnoush Farsiar]
Generational change. Farnoush Farsiar Global mobility. Technological advancement. Farnoush Farsiar, EU Today writes that these are only a few of many key changes that have affected family offices and fundamentally impacted their operating structures and practices.

Family offices are increasingly catering to the mobile, younger generation. The financial crisis and the increasing accessibility of trading using online tools have created a new generation of clients, regardless of age at all, more involved in their investments and want to gain more knowledge and more involvement as well as losing the old fashioned desire for discretionary portfolios that are managed by an arm's length.

These changes come at a time when there is unprecedented political and economic turmoil. These changes 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 relegated by the people they were created to help. They must change their approach to become more entrepreneurial and create an attractive proposition for UHNWIs.

Family offices vary hugely in size and scale, but regardless of this, they should prioritise agility as well as improving their services instead of trying to be experts in everything. Clients will receive a more efficient service if they are able to employ fewer advisors who can implement new technologies quickly and bring in outside specialists when needed. As the boundaries between family and private banking are blurred the most successful firms will have a smaller team of advisors that can swiftly implement new technology and work with external specialists when required. This will enable them to provide a more valuable service to clients.

Success will result from the capacity to profit from more traditional, traditional, network- and reputation-based strategies for deal sourcing whilst also using online methods to find deals and opportunities. Private offices and wealth managers which can handle large amounts of deals online are more effective than banks that are cumbersome. These platforms allow dealmakers to review and access a huge amount of deals at a time, which is a significant saving of time and effort.

Wealthica and other services on the internet are also changing how family offices interact with their clients. They automate the consolidation of investment portfolios across various sources and allow clients to be in daily contact with the investments. This is a far way from the days the days when wealth managers could only give periodic updates to their clients' investments.

Farnoush Farsiar Of course, these tools are just an instrument to help wealth managers enhance their efficiency and speed at which they operate. The most important factor is their investment strategy. The best approach is to blend the old and the new. That means that you can continue to look for opportunities on real estate however, you should also look into investments in other sectors like food security or climate science. Farnoush Farsiar Impact investing is definitely 'arrived' within the family office industry. According to the UBS Global Family Office Report 2018 revealed that one-third of family officers are engaged in impact investing. https://www.pinterest.com/farnoush-farsiar1kdddd33/ Many anticipate taking part in the future. Although there are some issues in the field, such as the difficulty of measuring the impact of investments as well as due diligence the HNWIs and UHNWIs of the future will want family members to have the ability to identify the right investment opportunities. Plato Capital is my boutique investment bank. Plato Capital draws from the experience of its founders, who have worked for large banks and the tech sector. Plato Capital provides investment advice that focuses on the entrepreneurial. Our clients can maximize their returns and control risk with our personal network.

By blending the old and the new, while adjusting to the needs of the younger generation, and being prepared to take risks with their own structures and techniques, wealth managers of all kinds can remain relevant and thrive even in the midst of difficult times. Farnoush Farsiar
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