The Family Roundup #13

68% of family offices report preserving asset value as their primary concern

Source: Citi Private Bank Global Family Office Report 2023 

TRENDS

WHY ARE SFOs TRANSITIONING TO MFOs? 

SFOs in Asia are shifting to MFO models to reduce costs and overcome talent acquisition challenges. While this transition offers benefits like shared resources and regulatory advantages, it also presents challenges related to trust, regulatory compliance (such as internal and external audits, annual submissions, etc.), and fee structures, which can involve waiving a significant portion of management fees. (Asian Investor)  

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REPORT

FAMILY OFFICE SOFTWARE AND TECHNOLOGY IN 2023: SIMPLE  

Simple released their fourth annual review of family office software. Highlights include:  

• A look into the family offices of today, such as changes within operations, investment activities, and adaptation to external factors. 
• Key technology needs by segment -wealth owner, external management, and institutional family offices/wealth management teams). 
• The current state of the industry – client demands, feature updates, onboarding processes, and focus on AI, ESG, and security matters. 
• Challenges faced by family offices in picking the right family office software. (Simple) 

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TRENDS

STRONG GROWTH OF FAMILY OFFICES IN AUSTRALIA 

There is an increasing popularity of family offices in Australia, with over 2000 such entities currently in operation. These family offices offer a wide array of financial services, including wealth management, estate planning, and philanthropy. The trend is driven by advances in technology, a rise in wealth among Australians, and the need for comprehensive wealth management and intergenerational wealth transfer solutions. (Australian Financial Review) 

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INSIGHTS

4 KEY GOALS FAMILIES ARE PRIORITISING 

Per DBS, family offices have four main goals in mind: achieving harmony across generations, aligning values between the family office and the business, unlocking new investment strategies, and managing risk. (Singapore Business Review) 

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INSIGHTS

STAY ANONYMOUS OR BUILD A BRAND? 

Two key archetypes in branding, where one seeks anonymity while another builds a brand for visibility. Developing a brand backed by core values can also help with internal alignment and decision-making. A strategic approach to shaping a brand narrative helps manage public perception. (Francois Botha for Forbes) 

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