> >> >


He stresses Increasing the


offerings Multi family offices are also moving to offer ultra-wealthy families multiple non-investment offerings, as well as investment management, in an effort to increase growth. Glenmede’s president and chief executive


Gordon Fowler admits it is becoming a major challenge. “It is challenging for larger firms to find


enough new clients to grow organically,” he says. “In order to boost growth, larger firms


will often resort to a product focus with an emphasis on higher margin vehicles, cost- management that reduces services, and aggressive cross-selling.” And non-investment services are


becoming such a revenue stream for some, it is almost eclipsing the fund management itself. For example, at Stonehage Fleming, Hudson says: “Substantial though our investment activities are, they account for under 50% of our total group revenue,” noting that the group’s other offerings, which range from succession and financial planning to “private equity investment, corporate finance, family business and property advice” (even ‘art investment’) have proved to be excellent feathers in the group’s cap. The Global Family Office Report 2017


ISSUE 72 SUPPLEMENT | 2017


reported that the average amount spent on family professional services by multi family office participants was $1.3 million with governance and succession planning averaging $399,000. Other CMFOs like Glenmede also provide


philanthropic advice—essential in a market like the US where giving money to worthy causes can cut hundreds of thousands off the givers’ tax bill as well as family education, which ranges from investment to philanthropy to tax implications. Deloitte’s 2017 Investment Management


Outlook acknowledged wealthy individuals want to increase their income, noting “private equity has continued to attract investment even with current high valuations,” adding that “fundraising increased incrementally over the past five years as investors increased allocations in the sector”. Values-based investing is also on the rise.


Spudy—along with his partners—became part of the United Nations Principles for Responsible Investment Initiative, meaning the company invests responsibly. “We are committed to sustainability,”


Spudy says, noting the move was “well received by our clients”.


that Glenmede— like a lot of multi family offices— is not just an investment house. “For ultra-high net worth clients, good planning and implementation can add value for generations,” he explains, adding that his group offers everything from tax advisory services, philanthropic advice, family wealth education, and reviews of an ultra- wealthy family’s estate. And although the office has seen solid growth in all three parts of its business (institutional investing, UHNW family wealth planning, US equity strategies), the group has seen growth rise substantially in the UHNW and institutional investing business, which includes pension funds, endowments and other investments for corporate clients. As for the market itself, things are so strong at the moment that although Fowler sees some sort of pullback, he does not see a calamitous fall like the one that destroyed banks, businesses and homes in 2008. “We do not see any excesses that are significant enough to bring about an end to the bull market at this time, but that does not mean the markets are impervious to occasional meaningful pullbacks,” he notes.


CAMPDENFB.COM 21


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32