Notes

How wealth management firms can be prepared for turbulent times? [Farnoush Farsiar]
Generational changes. Global mobility. Farnoush Farsiar Technological change. Farnoush Farsiar writes for EU Today that these are just a handful of major changes that will affect family offices and could fundamentally alter their operating structures.

Increasingly, family offices cater to the young, more tech-savvy and mobile generation. Everyone, regardless of age, are becoming more attracted, regardless of their financial situation and in managing their own investments. This means that they are looking for more information and involvement , not just the services of a portfolio manager.

Farnoush Farsiar These changes are coming at a time when there an unprecedented economic and political turmoil. These changes also mark the end of the fee-based family offices model. If an office tries to retain its old methods they'll soon be abandoned by the very people they were meant to advise. Instead, they must adapt and adopt a more entrepreneurial approach to investment management, in order to create a true worth proposition for UHNWIs.

Although the size and scope of family offices are different, it's important that they prioritize efficiency and speed rather than being experts in all things. Clients will appreciate a smaller team of advisors that can quickly adopting new technologies as well as hiring external experts as needed. Farnoush Farsiar These changes will require the blurring of lines between private banking and family offices the most successful companies will be those that maintain the trust and loyalty of their clients. trust of a family office while staying ahead of the curve with the sourcing of deals and embracing technology.

Your success will depend on your ability to access traditional networks, reputation-based, and network-based sources of deal sources. Farnoush Farsiar Farnoush Farsiar Additionally, you can utilize online methods and tools to find deals or opportunities. Online deal sourcing platforms can be easily incorporated by wealth managers and agile private offices, in contrast to big banks, which have bureaucratic burdens. Dealmakers can access and evaluate large numbers of deals simultaneously, which is a significant savings in time and resources.

Wealthica and other services on the internet are also changing how family offices interact with clients. They consolidate investment portfolios across various sources and bring clients into regular contact with their portfolios. https://bbs.pku.edu.cn/v2/jump-to.php?url=https://reportlet.co.uk/psc/4JvfQwpTV8vIqepLTGpSXcssw-o/ms-farnoush-farsiar-aidi It's a contrast to the past when wealth managers were able to offer periodic information on their clients' investments.

Of course the tools are just that - the means by which wealth managers can increase the speed and efficiency with that they function. Farnoush Farsiar Most important is their investment strategy. Farnoush Farsiar The best strategy will combine the traditional and the modern. This means that you should continue looking for opportunities in real estate, but also consider investing in areas like food security or climate science. Impact investing has definitely arrived in the family office world - the UBS Global Family Office Report 2018 found that one third of family offices are involved in impact investing and many expect to become more active in the near future. There are definitely challenges in this field, including difficulties in monitoring impact and executing due diligence, the coming generation of HNWIs and UHNWIs are expected to anticipate family offices to be able to determine and secure these kinds of investments. Plato Capital is my boutique investment bank. Farnoush Farsiar Plato Capital draws from the experience of its founders who worked for large banks, as well as in the tech industry. Plato Capital provides investment advice that is geared towards the entrepreneurial. Our clients are able to achieve maximum returns and reduce risk with our personal network.

Through blending the traditional with the new, while adjusting to the needs of the younger generation, and being prepared to risk their own strategies and structures, wealth managers of all kinds are able to be successful and relevant even in the midst of difficult times.
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