Family Office Costs

Evaluating the total cost of wealth management

What does it really cost to manage multi-generational wealth effectively? Are my wealth management costs in line with other family offices like mine? In the wake of the financial crisis, wealth owners are increasingly asking these questions and are paying attention to the costs associated with managing their wealth. They want assurance that the value they receive merits the cost.

Best Practice 

Complexity is the single biggest driver of wealth management costs. The Cost of Complexity: Understanding Family Office Costs outlines the cost of today’s family office using data from FOX Family Office Benchmarking™ and delves into the factors that most impact the total cost of wealth management. The total cost of wealth management equals family office costs plus external advisory costs plus external investment costs. For the first time, this research explores the key components of investment costs – custody, investment consulting, and investment management fees. 

Communicating effectively about the costs of the family office is a challenge for most family office executives, but an informed client is a happy client. In the Trust & Estates article, The Elephant in the Room, FOX outlines the importance of frank and continual conversations about cost.

Industry Benchmarks

Who pays for the office? There are many different ways to allocate the cost of the office. The presentation Value, Equity, Sustainability covers common cost allocation and pricing practices.

Learn more about The Cost of Complexity research by listening to the webinar

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