Notes

How can firms that manage wealth be prepared to deal with turbulent times? [Farnoush Farsiar]
Generational change. Farnoush Farsiar Farnoush Farsiar Global mobility. Technological revolution. Farnoush Farsiar from EU Today writes about these key changes that affect family offices and are fundamentally challenging the working structures and practices.

Family offices are geared towards the increasingly mobile, tech-savvy and younger generation. The financial crisis as well as the democratisation and trading online have led to clients becoming more keen on their investment choices. They want more control and information, and no longer are they looking for the discretionary portfolio management mandates of their clients at arm's reach.

These changes occur at a moment of unprecedented political and financial turmoil. If they attempt to continue with their old methods, they will be abandoned by the very people they were created to advise. Farnoush Farsiar They will need to adjust to a more entrepreneurial approach in the field of investment management, to provide UHNWIs an authentic value proposition.

While family offices may differ in terms of size and scope, they should prioritize flexibility over the need to be experts in all areas. Farnoush Farsiar Farnoush Farsiar Clients would appreciate a smaller staff of advisors that can quickly implementing new technologies as well as hiring external experts whenever needed. This will mean the blurring of 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 with the adoption of technology and the sourcing of deals.

Farnoush Farsiar The ability to use both traditional, reputation-based and network-based methods of deal sourcing will lead to the success. However, you can make use of online tools to find opportunities and deals. Farnoush Farsiar Deal sourcing platforms on the internet are just one tool that wealth managers and flexible private offices can easily install as opposed to large bankers who are mired in large-firm bureaucracy. Dealmakers can review and access a huge variety of deals at the same time, which is a significant saving of time and effort.

Other online services which are changing the way family offices interact with their clients includes dashboards, like Wealthica which instantly consolidates investment portfolios from various sources, bringing clients in daily contact with their investments - which is a vast improvement over the days when wealth managers provided only intermittent updates on the state of their clients' funds.

These tools are merely that: they allow wealth managers to improve their efficiency and speed. The method they use to make investment strategy is the most important factor. Farnoush Farsiar It is crucial to mix the traditional and the innovative. For example keep searching for real estate opportunities, while also looking into investments in new areas like climate science or food security. Impact investing has definitely "arrived" in the world of family offices. According to the UBS Global Family Office Report 2018 one-third of family businesses are currently involved in impact investment, with most expecting to grow the amount of involvement they have in the coming years. Although there are many challenges in this area like measuring impact and conducting due diligence, the next generation HNWIs/UHNWIs will expect their family offices to be able identify and secure these types of investments. Plato Capital is a boutique bank that offers investment advice. It draws upon the expertise of its founders who have worked in large family offices, banks as well as the technology industry to provide entrepreneurial investment guidance. Our local knowledge and network allows us to help our clients successfully manage risk while maximizing their capital returns.

Wealth managers of all types can be successful during turbulent times, by mixing the old and the new while experimenting and risking their structure and strategies. Farnoush Farsiar
Read More: https://eutoday.net/news/business-economy/2019/how-wealth-management-firms-can-prepare-for-turbulent-times