RECAP: 2019 FOX Wealth Advisor Forum

2019 FOX Wealth Advisor Forum - Recap


On the Minds of FOX Members

Alexandre Monnier, President, Family Office Exchange

Session Description: 

This session explored what’s on the minds of members, including the changing needs and demographics of owners, trends regarding asset allocation, the family office of the future, and the shifting talent paradigm.

"We see families recreating the cycle of wealth by focusing on entrepreneurship, acting more like G1 owners in their approach to wealth."
- Alexandre Monnier
Key Takeaways: 
  • Families are transitioning from a focus on wealth to a focus on well-being (ex. an interest in preserving their values). This leads to a changing role for advisors with a greater focus on helping families think about risk (beyond wealth management), helping them manage the speed of change, becoming a thinking/strategic partner and supporting the emotional dimensions of wealth. 
  • Highlights from the 2019 FOX Global Investment Survey were shared:  
    • Flat is the New Up: Even though performance is flat, investors are quite satisfied with a wide variety in returns across asset classes. 
    • Market Outlook: 40% are uncertain, but 44% are modestly optimistic, no one is bearish. 
    • Rethinking Asset Allocation: Family offices continue to question traditional top-down asset allocation (mixing a top-down and bottoms-up approach). 
    • Reallocation of Assets: Families are allocating away from hedge funds and toward private equity (both funds and direct). 
    •  Increase in Direct Investing year-over-year.
      • 84% of families engage in direct investing. 
      • Sources of deals are diverse. 
      • Types include: 88% Real Estate, 71% Operating Companies.
    • As families progress generationally, they tend to shift toward a single advisor model, opting to retain discretion.
  • Perspectives on the Ultra-Wealth Business, from the FOX MFO study:
    • Revenue growth has shown resilience to lower asset values. 
    • Strong new client growth has contributed to revenue growth. 
    • Low correlation between fees and asset growth may be a positive sign during volatility but pricing pressures continue as prospect fees trend down. 
    • Firms shifted focus to marketing budgets compared to sales budgets. 
    • Priorities have shifted from recruiting to leadership development in order to enhance the client experience and commitment to succession issues (aging employees), desire to increase productivity and steady focus on employee experience and culture
  • It is important for advisors to connect the dots to build the advisory firm of the future, investing in enabling technologies to support client experience, responding to new client demands and transitioning roles in response, as well as recruiting, developing, and retaining the right talent to support the new client.

(FOX Members only)