Harriet Davies, Editor, Family        Wealth Report   www.fwreport.com   Plugging In: Best Practices And       Emerging Fa...
Moving to stand still• The most critical effect of the financial  crisis may be a sea-change in attitudes  towards capital...
What is a family office?• First legal definition for single-family  offices under Dodd-Frank;• “Multi-family office” still...
The question of fees                      Pressure on margins in a pure advice model                             Some mult...
Asset bases versus project            based fees• Anecdotal evidence of a movement  towards project based/retainer fees;• ...
New business models• MFOs developing à la carte services so clients can  customize offering• Dodd-Frank – still a lot of u...
Reframing the way we think          about wealth• Goals-based planning movement: asks what is  the ultimate purpose of the...
Family dynamics• Communication breakdown cited as a primary  reason for unsuccessful wealth transfer among  families – Wil...
Technology requirements• Family offices still waiting for full reporting  solution• One of the largest complaints I hear i...
Wealth and philanthropy• Private client demand for philanthropic services has  remained strong despite downturn (Reuters W...
Plugging In: Best Practices And Emerging Family Office Governance Trends - Presentation: Harriet Davies, Family Wealth Rep...
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Plugging In: Best Practices And Emerging Family Office Governance Trends - Presentation: Harriet Davies, Family Wealth Report - Elite Summit

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For more information contact: emailus@marcusevans.com

Harriet Davies, Editor from Family Wealth Report shared their presentation titled "Plugging In: Best Practices And Emerging Family Office Governance Trends" at the Elite Summit 2011.

Join the November 2014 Summit along with leading European family offices and global asset managers in an intimate environment for a focused discussion of key new drivers shaping wealth management strategies today.

For more information contact: emailus@marcusevans.com

Published in: Business, Economy & Finance
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Plugging In: Best Practices And Emerging Family Office Governance Trends - Presentation: Harriet Davies, Family Wealth Report - Elite Summit

  1. 1. Harriet Davies, Editor, Family Wealth Report www.fwreport.com Plugging In: Best Practices And Emerging Family Office Governance Trends
  2. 2. Moving to stand still• The most critical effect of the financial crisis may be a sea-change in attitudes towards capitalism broadly, and financial services providers more specifically.• This is causing: regulatory overhaul of a scale not seen in decades; higher client expectations (more for less)
  3. 3. What is a family office?• First legal definition for single-family offices under Dodd-Frank;• “Multi-family office” still doesn’t have strict business model; some spillover expected from definition of single-family offices;• Questions being asked about independence and fees in the MFO space.
  4. 4. The question of fees Pressure on margins in a pure advice model Some multi-family offices logging hours to work out what it costs to serve clientsReviewing annually to compare cost of service and charges, andexplaining this to the family Logical fee structure sustainable margins
  5. 5. Asset bases versus project based fees• Anecdotal evidence of a movement towards project based/retainer fees;• Some MFOs charging higher fees for first year of service to reflect higher costs
  6. 6. New business models• MFOs developing à la carte services so clients can customize offering• Dodd-Frank – still a lot of uncertainty among single-family offices, with over half still unsure of full impact, according to the latest Family Wealth Alliance Single Family Office Survey (last summer )• Concept of an equity family offices, brings alignment of interest but also practical problems
  7. 7. Reframing the way we think about wealth• Goals-based planning movement: asks what is the ultimate purpose of the wealth?• Tries to align the investment risk, liquidity and timeframe with the ultimate use of each “portion” of wealth• Should ensure the wealth supports a client’s lifestyle, and help clients keep calm when they turn on the news…so saving precious time
  8. 8. Family dynamics• Communication breakdown cited as a primary reason for unsuccessful wealth transfer among families – Williams and Preisser, Preparing Heirs• Older generation lacks trust in the younger generation to manage the inheritance well, especially in the UK, US – recent Barclays Wealth Insights report• Allaying some of these concerns can provide value to clients…but how do you charge for this?
  9. 9. Technology requirements• Family offices still waiting for full reporting solution• One of the largest complaints I hear is the need for better reporting across multiple asset managers, brokerage providers and custodians – often in multi-currency environments and across dozens of tax entities
  10. 10. Wealth and philanthropy• Private client demand for philanthropic services has remained strong despite downturn (Reuters Wealth Management Summit)• Latest developments in venture philanthropy or mission investing, which also looks to leverage charitable foundations’ principal towards the charitable mission, and align investment and distribution goals• Can be used to enhance family ties, as well as an example of how wealth can be used positively, to help re-engage wider community
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