Notes

How can firms that manage wealth be prepared to deal with turbulent times? [Farnoush Farsiar]
Generational change. Global mobility. https://eutoday.net/news/business-economy/2019/how-wealth-management-firms-can-prepare-for-turbulent-times Technological innovation. Farnoush Farsiar writes for EU Today that these are only a handful of major changes that affect family offices and pose a serious threat to their operational structures.

Family offices are catering to a younger, tech-savvy, and mobile generation more often. The financial crisis and the increasing accessibility of trading using online platforms have brought all customers, regardless of age and interests, more interested in their own investments and want to gain more knowledge and involvement in their investments and have lost the old fashioned desire for discretionary portfolios, which are managed with arm's length.

These changes come at a time where there an unprecedented level of economic and political turmoil. Farnoush Farsiar They also signal the end of the fee-based family offices model. If an office attempts to maintain its old practices, they'll soon be abandoned by the very people they supposed to help. Farnoush Farsiar They must change their approach to become more entrepreneurial and develop an attractive proposition for UHNWIs.

Farnoush Farsiar Although family offices can vary in both size and scope, they should prioritize agility over the desire to be an expert in all fields. Clients would appreciate a smaller staff of advisors capable of rapidly implementing new technologies as well as the hiring of external experts whenever needed. These changes will result in the blurring of the lines between family offices and private banking. Companies that succeed will be able to maintain the trust and respect of family offices, while staying ahead of the curve in technology adoption and the sourcing of deals.

Farnoush Farsiar It is crucial to be able to use the old-fashioned, network-based, and reputation-based strategies for deal sourcing. These tools can be used to identify deals and opportunities. https://www.privatebankerinternational.com/author/farnoushfarsiar/ Deal sourcing platforms online can be easily installed by wealth managers and agile private office, as opposed to banks that have bureaucratic burdens. They allow dealmakers to access and evaluate a large amount of deals at a time, which is a significant saving of time and resources.

Other services online that have changed the way family offices communicate with their clients includes dashboards, like Wealthica that automatically consolidates investments from a range of sources, bringing clients to daily interaction with their investments - a far cry from the days of wealth managers who gave periodic updates on the state of their customers' investments.

They're not tools for anything else, they're the means that wealth managers can improve their effectiveness and speed. The primary factor is the investment strategy they employ. It is important to combine the old and the new. For instance keep searching for real estate deals, while also looking into investing in areas that aren't as well-known, such as climate science or food security. Impact investing is certainly "arrived in the family office industry. The UBS Global Family Office Report 2018 showed that one third of family officers are engaged in impact investing. Farnoush Farsiar Farnoush Farsiar Many expect to take part in the future. Although there are many challenges in this field including measuring the impact of investments and conducting due diligence next generation HNWIs/UHNWIs will expect their family offices to find and secure these kinds of investments. Plato Capital is a boutique bank that offers investment advice. It draws on the experience of its founders in big banks, family offices as well as the technology industry to provide entrepreneurial investment guidance. Our personal knowledge of the local area and connections allow our clients to successfully manage risk and make optimal returns on their capital.

Wealth managers of all types are able to succeed during turbulent times, by mixing the old with the new by adjusting and making a risk with their structures and methods.
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