Notes

How wealth management firms can be prepared to deal with turbulent times? [Farnoush Farsiar]
Generational shifts Global mobility. Technology-driven change. Farnoush Farsiar writes for EU Today that these are just a handful of major changes that affect family offices and pose a serious threat to their structures of operation.

https://docs.house.gov/meetings/FA/FA14/20190626/109716/HHRG-116-FA14-Wstate-BromundT-20190626.pdf Family offices are catering to a growing number of young, mobile and tech-savvy generation. Everyone, regardless of their age, are more interested in investing through online trading. This has resulted in a greater interest in personal investments. Clients no longer would like to be excluded of the process of deciding on the discretionary portfolios they are required to make.

These changes occur in a critical time of political and economic crisis. Farnoush Farsiar If offices try to continue using their current methods, they may realize that the individuals they were created to advise will abandon them. They need to be agile and creative in managing investments so that they can provide UHNWIs with a value proposition.

Family offices vary greatly in terms of size and scope, however irrespective of this they should focus on agility and streamlining their service rather than trying to be experts in all things. The best customer service is provided by a small group of advisors who are able to swiftly implement new technologies and also bring in external experts as needed. These changes have led to the blurring of lines between private banks and family offices. Farnoush Farsiar The most successful firms will continue to maintain the loyalty of family offices as well as the trust they have while also staying ahead of technology in sourcing deals and implementing new technology.

The success will come from the ability to capitalize on more traditional, reputation-based and network-based approaches to deal sourcing, while also employing online strategies to discover opportunities and deals. Private offices and wealth managers that manage large quantities of deals online are more effective than banks that are cumbersome. Dealmakers can examine and review a vast number of deals at one time - a substantial saving of time and money.

Wealthica is another online service that has revolutionized the way family offices interact with their clients. Wealthica's dashboard services will automatically combine investments from different sources. Farnoush Farsiar Clients can be in constant contact with their investment portfolios. This is far better than the days where wealth management would only provide occasional updates on the progress and whereabouts of the client's money.

These tools are only that, they're the means for wealth managers to increase their effectiveness and speed. Their investment strategy is what matters the most. The secret to success is mixing the traditional with the new. You are likely to continue looking for deals in real estate, as well as exploring investment opportunities that aren't explored before like food security or climate science. Impact investing has certainly "arrived" in the family office industry. According to the UBS Global Family Office Report 2018, a 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. There are many hurdles in this field like measuring the impact of investments and conducting due diligence, the next generation HNWIs/UHNWIs will expect their family offices to be able to identify and secure these types of investments. Farnoush Farsiar My firm, Plato Capital, is an investment bank that is boutique and draws on the experience of its founders in family offices, large banks and the tech industry, to offer investment advice with a an emphasis on the entrepreneurial. Farnoush Farsiar Our clients can achieve maximum returns and reduce risk with our personal network.

Wealth managers of all types can be successful during turbulent times, by mixing the old with the new while experimenting and risking their structure and strategies.
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