Keep it in the family
Ultra high-net-worth clients do not want standard packaged solutions to meet their investment needs, according to Myer Family Office managing director Graham Reeve.
“These people are demanding and know what they want,” he told a Dealers’ Group conference in Melbourne.
“High-net-worth clients want advisers who have a genuine interest in their affairs, although they still want to retain responsibility and control.”
Reeve said starting a family office requires disposable assets of at least $100 million.
“The people using family offices are educated clients who want more than passive advice,” he said.
“Their involvement may drop off as they get older, but these clients are still seeking expert input and guidance.”
Reeve said even though the family might be very wealthy, they still want value for money from their advisers, but are willing to pay for good service.
“They are looking for advice that incorporates the whole family, including upcoming generations,” he said.
In Australia it is believed there are about 1,500 families with more than $30 million in disposable wealth.
Of these, there are perhaps 200 family offices, and Reeve believes less than 10 offer services to families outside the office owner.
Reeve said families set up their own offices because they want confidentiality and bespoke solutions for their needs.
“They also want a single point of contact for the whole family to ensure continuity.”
An important part of the advice offered to families is philanthropy, intergenerational issues and family governance.
Reeve said families also want to deal with the same advisers for a long time, as they regard continuity as very important.
“It is about dealing with human, intellectual and financial capital within the family,” he said.
“There is also moral capital within the family, which is also regarded as important.”
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