Clients see their family office as an extension as well as hybrid of traditional wealth management and other professional services – they think of it as one’s private investment office.
At the core of the family office is portfolio management – the management of all the family’s investments – articulating return and spending objectives, asset allocation, risk management, and consolidated reporting. The region has recently seen an increase in demand for private-label family funds as a means to manage family wealth.
MFOs also provide family governance – which involves consulting with the family to put processes in place to ensure proper governance of their business or personal affairs. They also help with succession planning – estate planning as well as coaching on leadership, decision-making, and managing change.
Other significant responsibilities of MFOs lie in the financial education of the next generation and planning for charitable as well as philanthropic causes. Many MFOs provide this whole suite of services as well as supplementary non-investment services such as business consulting, concierge facilities, and day-to-day administration of the families’ affairs.