FAMILY OFFICES

 

Your challenges include the complexities of large corporations coupled with the highly personal considerations of any family.

 

Many wealthy families form their own private offices to manage their extensive assets. Family offices can be responsible for a wide range of financial duties from figuring taxes to transferring businesses among family members to developing philanthropic strategies.

 

But, in addition to overseeing and preserving assets, a family office can also seek to generate money by taking an institutional approach to investing. Recent surveys indicate that ultra-high-net-worth individuals are increasing their allocations to alternative investments, which include managed futures and foreign exchange.

 

Family offices can grow family wealth from generation to generation through a diversified range of investments. Alternative investments can be particularly essential to larger investors. They can provide necessary diversification of sizable portfolios by helping to decrease the risk associated with traditional investments, such as stocks and bonds.

 

While institutions and high-net-worth individuals have traditionally sought out these types of investments to grow and protect their capital, the market performance of the last decade has brought greater prominence to these investors, as more and more investors amassed considerable wealth and gained access to the exclusive arena of alternative investing.

 

Now that traditional markets have experienced significant volatility, alternative asset classes have become more important than ever because they are generally not correlated to market performance. They are typically less sensitive to market volatility and are designed to do well in both up and down markets.

 

But not all investors can access these opportunities - only those individuals with significant wealth can meet the high-net-worth requirements to qualify - $5 million or more in investable assets net of liabilities - as well as the high minimum investment amounts. These barriers to entry exist for good reason. While investors can limit their market risk by using non-correlated alternative assets, they still face other kinds of risks that differ from that of traditional investments - risks that wealthier investors are more capable of assuming.

 

Alternative investments may use leverage or remain illiquid for long periods of time. Therefore, investors in these asset classes should have high-risk tolerance, low liquidity concerns, and long time horizons - for which they could potentially reap huge rewards.

 

Because alternative investments tend to be sophisticated instruments and require a discriminating understanding, family offices often seek outside expertise on the best ways to use them. In fact, a family office may outsource all investment management to independent advisory firms.

 

Outsourcing family office functions makes sense for many families because while they may have had great success in business, money management may not be their area of expertise or they may not have the time to do it effectively. Regardless of how the office is structured, alternative investments can be a crucial part of every wealthy family's asset allocation model. If part of a well-diversified portfolio, alternative investments can help to lower the risk associated with the market and generate magnified returns. External advisors can help the family make the most of alternative investments to grow and protect their wealth well into the future.

 

Wealth preservation is the name of the game. Studies show that there is likely to be a massive transfer of wealth from one generation to the next in the coming years. But for Family Offices, generational wealth is being put at risk by the recent disappointing returns from traditional investments in the equity and debt markets. Asset diversification is a key to wealth preservation that helps ensure generational wealth gets handed down.

This need for diversification is driving Family Office fiduciaries to actively seek out alternative investments which include Managed Futures and Foreign Exchange. But navigating a sophisticated and complicated, yet rewarding asset class can be difficult without the right information, advice and tools.

 

Our Wealth Management and Preservation experts are dedicated to providing comprehensive and flexible financial solutions to families and individuals of substantial wealth.

 

With decades of experience in servicing High-net-worth Individuals and their Family Offices, we combine technology and institutional capabilities with a tradition of personalized service to meet your unique needs and goals.

 

Each family office is assigned a singular Relationship Manager to oversee every aspect of your account.

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