The Family Office

The Family Office

A Family Office essentially operates as a personal CFO or Chief Advisor to families who have large wealth.
The family is supported by a dedicated team of financial professionals who are experts in different fields of finance such as wealth management, tax planning, estate planning, cash management and risk management, and who work together to make key financial decisions and create financial solutions to suit the needs, expectations and goals of their client families. It’s an integrated approach to managing wealth.

Steps in the advisory process for families

Benefits of the Service

Families usually engage a Family Office when their assets have grown to a size where full-time professional management is required or could be beneficial. There are a multitude of benefits to using Private Client Holdings to manage your family’s wealth:

• Access to trusted advisors that understand your goals and can creatively solve problems.
• Access to timely, consolidated analyses organized to support financial decisions.
• Access to objective, professional advice about what will best fit into optimised asset allocations and estate plans.
• Access to an integrated plan for your family’s complete financial affairs, including investments, wealth transfer strategies, proactive tax planning and optimal ownership structures.
• Access to a comprehensive approach to risk management, so family and wealth are protected.
• Access to a well thought-out investment policy and process that includes selection and oversight of money managers, effective diversification, and consolidated performance reporting.
• Save time and avoid complex management by having us coordinate and oversee all the components of your integrated financial affairs. This time saved means less detraction from the effective running of a business.
• Ability to separate the management of your family’s personal financial assets from those of your business for purposes of confidentiality.
• Asset management responsibility is taken on by our experts, relieving pressure from family members that are not willing, or capable of taking, on the responsibility.
• Advice is provided with a complete understanding of all the family assets and liabilities.
• Services are provided to the entire high net-worth family.
• It provides benefits of combined purchasing power, allowing for reduced costs.
• Investments are managed in the context of the overall family balance sheet.
• Coordination of professional advisors – including lawyers, accountants, investment and insurance advisors – to ensure that a family’s objectives are met.

• The confidence that, if something happens to you (or the main family decision maker), there will be someone in place who knows your family and your wealth to help manage through the transitions and into future generations.

Role of the Family Officer

A Family Officer acts as a Personal CFO or Chief Advisor to wealthy families, with a dedicated team of professionals who oversee and manage the complete financial affairs of client families. It provides a focal point for an individual and their family’s wealth and has a very large Coordination & Management role.

The Role of the Family Officer = co-ordination & management

To select an appropriate asset allocation and investment management strategy with a complete understanding of the family objectives and financial situation.

• To simplify and provide expert strategies to preserve wealth, define and sustain family values and create legacies at one single source.
• To prepare financial reports delivered in a simple, easy to understand format, organized around a family’s goal.
• To provide a comprehensive approach to risk management, so family and wealth are protected.
• To provide a well thought-out investment policy and process that includes selection and oversight of money managers, effective diversification, and consolidated performance reporting.
• To provide a comprehensive accounting service – prepare tax returns and consider specific tax consequences of each family member.
• To manage the acquisitions of existing and/or new businesses and to handle due diligence process.
• To manage lawsuits and attorneys and serve as a witness as necessary.
• To mentor and guide younger generation on business opportunities and Fiscal management and responsibility.
• To mediate family member conflicts.
• To coordinate the activities of all other advisors.
• To provide comprehensive administrative services including Cash Management, Cash Flows and budgeting and bill paying and banking.

Fees

A combination of asset based fees and hourly service related fees may be charged for our Family Office service.

Asset based fees are levied for Investment Management, Wealth Transfer and Family Meetings. These include: investment strategy and asset allocation, investment manager selection and monitoring, cash management, estate planning, trust administration, document and record management, succession planning and family governance.

Services fees are levied against Administrative, Accounting and Tax Services. These include: bill paying and banking, legal co-ordination, risk management, tax planning, tax preparation, financial statements and business administration.

These fees will vary depending on the extent and complexity of the work required.