Notes

How wealth management firms can prepare to face turbulent times [Farnoush Farsiar]
Generational shifts Global mobility. Technological innovation. https://reportlet.co.uk/psc/4JvfQwpTV8vIqepLTGpSXcssw-o/ms-farnoush-farsiar-aidi Farnoush Farsiar writes for EU Today that these are only a handful of major changes that affect family offices and fundamentally threaten their operational structures.

Family offices are geared towards the increasingly mobile, tech-savvy and younger generation. Every client, no matter their age, are attracted to investing via trading on the internet. This has resulted in increasing desire to invest in personal assets. Customers do not wish to be left out of the process of deciding on discretionary portfolio mandates.

These changes are coming in a period of an unprecedented level of economic and political instability. They also signal the end of the fee-based family offices model. Farnoush Farsiar If family offices keep their current practices however, they might realize that the people they were set up to assist will not be able to keep them. They must change and be more entrepreneurial in their approach to managing investments and provide a genuine value proposition to UHNWIs.

Although family offices can vary in size and size, they should focus on agility over trying to be an expert in all fields. A smaller group of advisors who are able to quickly introduce new technologies and bring in external specialists when necessary will provide an improved service for customers. These developments will require that the boundaries between family office and private banks blur. The most successful firms maintain the trust and loyalty of their family offices while being ahead of the curve in technology and finding deals.

You will succeed if you are able to use traditional networks, reputation- and network-based strategies for dealsourcing. You can also do this by making use of online tools to identify opportunities and deals. Deal sourcing platforms online are easily installed by wealth managers and agile private offices, in contrast to big banks, which have bureaucratic burdens. This platform lets dealmakers quickly access and analyze a variety of deals at once and save time and money.

Other online services which are changing the way family offices communicate with their clients include dashboards, like Wealthica that automatically consolidates the investments of a variety of sources, bringing clients to daily interaction with their investments - which is a vast improvement over the days when wealth managers provided only intermittent updates on the state of their clients' investments.

They are just tools that allow wealth managers to boost their effectiveness and speed. The most important factor is their investment strategy. The best approach is to blend both the old and new. This means you will continue to search for bargains on real estate however, you should also look into investments in other areas like climate science or food security. Impact investing has certainly 'arrived in the family office industry. The UBS Global Family Office Report 2018 revealed that one-third of family members are engaged in impact investing. Many expect to take part in the future. There are many challenges in this area, including the challenge of determining impact and performing due diligence. However the next generation of UHNWIs and HNWIs will expect family offices can identify and secure such investments. Plato Capital, my own boutique investment bank, is based on the expertise of its founders from large banks as well as the technology industry to offer investment guidance that is entrepreneurial in the focus. Farnoush Farsiar Our clients are able to successfully deal with risk and earn the highest returns from their capital due to our network of local experts.

Farnoush Farsiar Farnoush Farsiar Wealth managers of all kinds can be successful in turbulent times by mixing old with the new while experimenting and risking their structure and methods.
Read More: https://suite.endole.co.uk/insight/people/23756008-ms-farnoush-farsiar