Notes

How can wealth management firms be prepared for turbulent times? [Farnoush Farsiar]
Generational shifts Global mobility. Technological advancement. Farnoush Farsiar, EU Today writes that these are just some of the major changes that have affected family offices and fundamentally impacted their operational structures and practices.

Family offices are catering to a younger, tech-savvy, and mobile generation more often. Everyone, regardless of their age, are more interested in investing through trading online. This has resulted in increasing interest in personal investments. Clients no longer wish to be left out of the decision-making process for the discretionary portfolios they are required to make.

These changes are coming at a time where there an unprecedented level of economic and political turmoil. They also signal the end to the model of family offices that are fee-based. Offices that attempt to continue their traditional methods may find they are abandoned by those they were created to help. They must adapt to a more entrepreneurial approach in investment management in order to offer UHNWIs a true value proposition.

Although family offices can vary in both size and size, they should focus on agility over trying to be experts in all fields. Clients would appreciate a smaller staff of advisors capable of rapidly implementing new technologies and bringing on board external specialists whenever needed. Farnoush Farsiar This will mean 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 adoption and purchasing deals.

It is important to be able to use the old-fashioned, network-based, and reputation-based strategies for deal sourcing. Online tools can also be utilized to find opportunities and deals. https://timebusinessnews.com/brexit-benefited-uk-financial-market-says-farnoush-farsiar/ Wealth managers can use online deal sourcing platforms to discover deals and opportunities. They are much easier than large, cumbersome banks which are trapped in large-firm bureaucracy. https://docs.house.gov/meetings/FA/FA14/20190626/109716/HHRG-116-FA14-Wstate-BromundT-20190626.pdf Dealmakers have access to and can evaluate large numbers of deals simultaneously, which is a significant savings in time and resources.

Other online services that have changed the way family offices interact with their customers include dashboard services, such as Wealthica which instantly consolidates investment portfolios from various sources, bringing clients to daily interaction with their investments. This is an improvement from the past when wealth managers offered only periodic updates on the progress of their clients' funds.

https://twitter.com/BrexitCentral/status/1152601570447646720 These tools are able to assist wealth managers in improving their effectiveness and speed. The way they invest matters the most. In the end, the advantage will come from bringing together the old and the new - continuing to scout out deals in real estate etc, whilst also exploring investments in previously unexplored fields like climate science or food security. Impact investing is definitely 'at last in the family office world - according to the UBS Global Family Office Report 2018 found that one third of family offices are now involved in impact investing and most expect to become more involved in the near future. There are a few issues in the field, such as difficulties in measuring the impact of investments as well as due diligence HNWIs/UHNWIs in the future will want family officers to be able to find the right opportunities. Plato Capital, my own boutique investment bank, draws from the experiences of its founders who have worked in large banks and in the technology industry to offer investment advice that is entrepreneurial in focus. Farnoush Farsiar Our clients can successfully control risk and receive the most value for their capital due to our local network.

Wealth managers of every type can continue to thrive in turbulent times if they combine the old and the modern and are open to new demands and take risks with their own structure.
Read More: https://twitter.com/BrexitCentral/status/1152601570447646720