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the younger generations, and as new wealth is created, the combined effect will no doubt spur a further rapid increase
in demand for SFOs and MFOs.
The clear message that is coming out of our survey and the evidence from the rapid expansion of, and interest in,
family offices across Asia Pacific is that UHNW families are indeed intent on institutionalising and professionalising their
wealth, and increasingly so, year by year.
The big trend, therefore, is moving from an all-too-often unstructured approach to the management of family wealth,
and often poorly conceived estate planning, towards a far more structured and planned methodology. The formalisation
and professionalisation of all aspects of a UHNW family's wealth is indeed increasingly another luxury that these families
want and certainly can afford.
Our survey and our associated researchmined down into the wide variety of views that together provide some interesting
nuances to the perception of the family office, and the rationale for its rapid expansion across this region.
The family office structure is customised to manage the investments of the family business and financial assets, and
to provide holistic advisory services to members of the family with the primary objectives of growing, preserving and
transferring the financial, human and social capital of the family.
A family office will tend to not only manage the financial and administrative sides of a family's investible wealth, but
also the key elements that support decision-making and strategy, such as the business, family and asset governance
policies and structures, as well as legacy and succession planning and execution.
Moreover, the family office will often help the extended family handle many other administrative and lifestyle tasks
and objectives, including, but not limited to, education, healthcare and well-being, insurance, financial accounting and
reporting, as well as potentially a whole variety of 'concierge' services, perhaps including travel planning, organising the
family fleet of cars and drivers, and so forth.
The family office can also help with residence and citizenship planning for the family at large and individual members.
There is, in fact, a substantial trend towards HNW and UHNW Asian families investing to achieve alternative residence
and citizenship around the globe. Indeed, as both Singapore and Hong Kong adjust the regulations and incentives to pull
more family offices to their hubs, they are also offering these ultra-wealthy families, and the staff required to manage
them, much easier access to these types of sought-after residence and citizenship options.
So dramatic is the evolution of interest and activity
in this sphere of activity that it might almost be called
a revolution, so significant are the changes taking place
in the way in which the world's super-wealthy families
approach their wealth and the longevity of their
family dynasties.
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