Asian family offices are relying less and less on private banks, a relationship that had up until now been fairly strong in Asia. Asian family offices and wealthy families often used private banks to help manage wealth but that model is now shifting as more and more private bankers strike out to set up their own family office.
The family office concept is less well established in Asia than in Europe or the US, but that is changing as regional wealth grows, along with the need to preserve and transfer it to the next generation.
And as the scale of single- and multi-family offices (FOs) grows, so does the threat posed to their traditional relationships with private banks, argue FO executives.
An Asian FO will typically use a number of private banks to help manage its wealth, says Ong Iu-Jin, chief executive of Singapore-based multi-family office Deauville Private Office.
But private bankers are starting to recognise the potential of setting up their own multi-family offices (MFOs), whereby they can look after several entire portfolios, rather than just parts of them. “In future, we will use more direct, institutional type service from investment banks and asset managers,” he notes, suggesting other FOs will do the same. Source
tags: family offices, family offices in Asia, Asian private banks, Asian family offices and private banks, Asia families and private banks, ultra-high net worth individuals, hedge funds, asia, Deauville Private Office, Ong Iu-Jin