1. Newsroom
  2. Is an integrated model key to serving familyoffices?
Menu
UBP dans la presse 19.04.2021

Is an integrated model key to serving familyoffices?

Is an integrated model key to serving familyoffices?

PWM (08.04.2021) – Union Bancaire Privée’s Michael Blake discusses the importance of an integrated investment banking and wealth management model for servicing wealthy families


The investment advisory needs of the modern family office reflect families’ diverse objectives as they preserve and grow wealth across generations; from private equity to business financing, from consolidated performance reporting to family governance and, of course, planning for a smooth succession.

While the idea of an integrated investment banking and wealth management model that can meet all of these needs in a ‘one stop shop’ is alluring, many financial services firms fall short of delivering the exacting standards demanded by family offices across all investment domains and all geographies.

Chief among these challenges is that wealth management and investment banking are fundamentally different in structure and rarely turn out to be a marriage made in heaven. Services are provided by different teams which often operate according to different cultures, incentive structures and leadership.

In addition, big and integrated is no longer necessarily beautiful. The global financial crisis showed how a liquidity crunch in one part of an integrated bank can quickly spread to another. Prudential regulation has evolved in response, but the pages of the FT provide more recent reminders that integrated investment banking business models carry contagion risk.

On the other hand, pure players offer an alternative way for family offices to access the very best in advice and expertise, anchored by three principles.

The first is open architecture. Pure play advisers combine in-house investment expertise with full access to investment solutions from leading external providers. A rigorous and impartial selection process provides family offices with best-in-class product options and valuable insights into the full range of investment solutions available.

The second is specialisation. Focusing exclusively on wealth and asset management for private and institutional clients, as UBP does, is an added value for families and their family offices because it favours the development of deep expertise in relevant topics – such as tailored portfolio construction, alternatives and asset structuring – to complement the investment expertise family offices have developed in-house.

Thirdly, combining long-term thinking with fast execution is key. Family Offices plan across multiple generations and yet rightly expect institutional speed of execution. The flat hierarchy of many pure-play firms enables quick decision-taking, and the family-ownership or partner-led model encourages development of long-term relationships.

Family offices have unique needs and, in my experience, choose their advisers based on specialist expertise rather than convenience.

The job of a family office adviser is to understand those needs and advise accordingly. It is not to cross sell.

Financial firms of all shapes and sizes support family offices, but a pure play provides the stable foundations necessary to play an effective long-term advisory role for families and their family office leadership teams.

Family Office Advisory

Blake_Mike_150x150.jpg
Michael Blake
CEO Wealth Management Asia
View his Linkedin profile

Expertise

Impact investing - Contributing to a more sustainable future

What are the key features of impact investing?

Actualités les plus lues

UBP dans la presse 26.07.2021

Le Libor est mort, vive le Saron !

Le Temps (26.07.2021) - Le compte à rebours final est lancé. Dans moins de six mois, le 1er janvier 2022, le monde de la finance basculera dans l’ère post-Libor (London Interbank Offered Rate).

UBP dans la presse 18.05.2021

L’agilité: facteur clé de succès de la banque privée suisse

Le Temps (17.05.2021) - La gestion de fortune suisse, parfois présentée comme traditionnelle, pour ne pas dire «old fashion», s’est encore une fois révélée être un secteur agile et innovant, lui permettant de conserver son leadership.

UBP dans la presse 17.05.2021

Impact investing: reconciling nature and our finances

Raconteur (The Wealth Management 2021 report published in The Sunday Times - 16.05.2021) - The health of our planet is intimately linked to your pension and your long-term financial goals, says Victoria Leggett, Head of Impact Investing at UBP.


A lire également

UBP dans la presse 07.09.2021

De belles perspectives pour les obligations d’entreprise

Allnews (07.09.2021) - Cette année, nous avons conservé – et continuons de conserver – une vue positive sur les marchés du crédit. Cela a été motivé par notre scénario macroéconomique d’une reprise robuste et soutenue de la croissance mondiale alors que les économies se normalisent après le déploiement des vaccins.

UBP dans la presse 30.08.2021

«Remontée des taux dès la deuxième moitié de 2022 »

Article l’Agefi (27.08.2021) - Le contexte macro et son influence sur les banques centrales restent au cœur de l’attention des investisseurs institutionnels. Décryptage avec Philippe Gräub, responsable de la gestion obligataire globale à l’UBP.

UBP dans la presse 23.08.2021

The IPCC report – ‘code red’ for humanity

Environmental Finance (12.08.2021) - The latest IPCC report should shock the world into climate action – and for investors that means prioritising positive impact, writes Rupert Welchman.