Few single family offices and multi-family office providers were ready for the stress test of the past 18 months. Roelf Odendall, Managing Director of Turnstone Multi-Family Office and co-author of the Family Wealth Guide: The practical guide for wealthy families and family office, shares his thoughts on the 2021 Multi-Family Office trends following the dramatic changes and demands caused by the pandemic.
Roelf explores choice of jurisdiction, socially responsible investment strategies, structural changes, the upcoming generation and more..
Multi-office trends in 2021
Few single family offices and multi-family office providers were ready for the stress test of the past 18 months. The sudden changed situations in which families found themselves caused cracks, and even breakdowns, in the manner in which families and their wealth were managed. Family office leaders observed significant changes families made to their family office operational processes during 2020 and 2021. While the growth and management of assets remained important, family office leaders prioritised ensuring their own operations could continue and were sufficiently robust to withstand any future stress tests.
A few thoughts from Turnstone:
Country of choice
The choice of jurisdiction for a family office became more important for reasons other than tax and ease of access. Travel restrictions meant that principals could not move as freely as usual and could therefore not attend in person to matters requiring attention. Having local professional advisors who could act on behalf of a family became crucial for the execution of day to day activities.
The risk posed by the jurisdiction of family office operations became more pertinent. It was clear that certain governments lacked the substance and drive to deal with such crises in a manner that fostered trust and stability. This placed strain on family offices as their future operations were dependent on their ability to continue providing services to families under the most strenuous circumstances. In the case of individual family members living in multiple jurisdictions, the need for certainty about and confidence in the operations of the family office becomes an essential requirement rather than a preference.
The focus on the sustainability of family office operations highlighted the importance of having an appropriate structure in which a family office can function. A family office is vulnerable when its operations and functions are dependent on a single key individual. There are examples of the unexpected death of a key individual (in some cases followed by the passing of other senior family members shortly afterwards) that placed their family office in a position where it struggled to function effectively and provide for the family as usual. A robust structure allows for more decentralised control to mitigate the risk and impact of unexpected deaths.
Upcoming generation
Following the outbreak of the Covid pandemic, wealthy families began focusing more on how wealth is transferred to upcoming generations. In some cases this was driven by the sudden demise of some senior generation members and in others by the realisation that individual family members are not well prepared to receive their wealth. While many families have legal succession structures in place they have realised that their successors are not sufficiently prepared to receive the funds.
Another clear trend was families resorting to on-line platforms for communication and discussions on their wealth. The upcoming generations mostly lead the design of apps and technologies to facilitate family engagement and activities.
These interactions include adjusting family governance structures to provide for the needs and expectations of upcoming generations. Formal meetings are not as well received as they were by senior generations and now take place in more relaxed environments using well integrated technology.
Investments
Socially responsible strategies (Environment, Social, and Governance) have increased in importance. Upcoming generations have embraced the principles of ESG and lead their families to make lifestyle changes in accordance with their social responsibility objectives. No longer are ESG objectives seen solely as investment strategies but they are integrated in the way families live and operate.
Structural changes
We have observed that families are increasingly interested in changing their family offices to focus not only on their wealth, i.e. investments or fiduciary structures, but rather on adopting holistic approaches to their wealth. There is thus greater interest in designing specific family governance structures, assisting with immigration and securing existing legal structures.
Find out more about why the Isle of Man is the natural choice for Excellence in Finance.
Nov 28, 2023
Nov 9, 2023
Oct 31, 2023
Oct 24, 2023
Oct 23, 2023
Oct 20, 2023
Oct 20, 2023
Oct 16, 2023
Oct 13, 2023
Oct 10, 2023
Oct 10, 2023
Oct 10, 2023
Oct 2, 2023
Oct 2, 2023
Sep 29, 2023
Sep 27, 2023
Sep 14, 2023
Jul 27, 2023
Jul 25, 2023
Jul 24, 2023
Jul 20, 2023
Jul 19, 2023
Jul 18, 2023
Jul 17, 2023
Jul 13, 2023
Jul 4, 2023
Jul 3, 2023
Jul 3, 2023
Jun 30, 2023
Jun 12, 2023
May 24, 2023
May 4, 2023
May 4, 2023
May 4, 2023
May 3, 2023
Apr 19, 2023
Apr 18, 2023
Mar 21, 2023
Mar 17, 2023
Mar 8, 2023
Feb 28, 2023
Feb 14, 2023
Feb 7, 2023
Feb 2, 2023
Jan 24, 2023
Jan 23, 2023
Jan 18, 2023
Jan 13, 2023
Jan 6, 2023
Jan 6, 2023
Jan 4, 2023
Jan 3, 2023
Jan 3, 2023
Dec 22, 2022
Dec 14, 2022
Dec 12, 2022
Dec 7, 2022
Nov 28, 2022
Nov 22, 2022
Nov 22, 2022
Nov 21, 2022
Nov 14, 2022
Nov 8, 2022
Oct 26, 2022
Oct 21, 2022
Oct 17, 2022
Sep 27, 2022
Sep 27, 2022
Sep 22, 2022
Aug 12, 2022
Jul 27, 2022
Jul 21, 2022
Jul 20, 2022
Jul 7, 2022
Jun 30, 2022
Jun 30, 2022
Jun 29, 2022
Jun 28, 2022
Jun 15, 2022
May 19, 2022
May 18, 2022
May 17, 2022
May 13, 2022
May 9, 2022
Apr 28, 2022
Apr 8, 2022
Apr 4, 2022
Mar 28, 2022
Mar 16, 2022
Mar 7, 2022
Mar 1, 2022
Feb 7, 2022
Feb 1, 2022
Jan 21, 2022
Dec 21, 2021
Dec 6, 2021
Nov 9, 2021
Oct 25, 2021
Oct 12, 2021
Oct 12, 2021
Oct 4, 2021
Oct 4, 2021
Oct 4, 2021
Oct 4, 2021
Oct 4, 2021
Aug 31, 2021
Aug 31, 2021
Aug 31, 2021
Aug 10, 2021
Aug 10, 2021
Jul 26, 2021
Jul 15, 2021
Jun 29, 2021
Jun 9, 2021
Jun 2, 2021
Jun 2, 2021
Jun 2, 2021
Jun 2, 2021
Jun 2, 2021
Jun 2, 2021
May 13, 2021
May 13, 2021
May 7, 2021
May 4, 2021
Apr 27, 2021
Apr 27, 2021
Apr 27, 2021
Apr 27, 2021
Apr 22, 2021
Apr 20, 2021
Apr 20, 2021
Apr 1, 2021
Mar 31, 2021
Mar 30, 2021
Mar 29, 2021
Mar 26, 2021
Mar 25, 2021
Mar 10, 2021
Feb 23, 2021
Feb 17, 2021
Feb 12, 2021
Feb 2, 2021
Feb 2, 2021
Feb 2, 2021
Feb 2, 2021
Feb 2, 2021
Feb 2, 2021
Jan 19, 2021
Jan 15, 2021
Jan 15, 2021
Jan 15, 2021
Jan 11, 2021
Dec 23, 2020
Dec 3, 2020
Dec 1, 2020
Dec 1, 2020
Nov 30, 2020
Nov 17, 2020
Nov 5, 2020
Nov 2, 2020
Oct 22, 2020
Oct 22, 2020
Oct 20, 2020
Oct 13, 2020
Oct 7, 2020
Oct 1, 2020
Oct 1, 2020
Sep 30, 2020
Sep 29, 2020
Sep 29, 2020
Sep 29, 2020
Sep 24, 2020
Sep 23, 2020
Sep 23, 2020
Sep 21, 2020
Sep 16, 2020
Sep 16, 2020
Sep 14, 2020
Sep 7, 2020
Aug 24, 2020
Aug 24, 2020
Aug 13, 2020
Aug 13, 2020
Aug 13, 2020
Aug 5, 2020
Aug 4, 2020
Jul 30, 2020
Jul 30, 2020
Jul 30, 2020
Jul 29, 2020
Jul 28, 2020
Jul 27, 2020
Jul 27, 2020
Jul 27, 2020
Jul 24, 2020
Jul 24, 2020
Jul 13, 2020
Jul 13, 2020
Jul 7, 2020
Jun 30, 2020
Jun 29, 2020
Jun 29, 2020
Jun 29, 2020
Jun 25, 2020
Jun 22, 2020
Jun 3, 2020
May 28, 2020
May 28, 2020
May 28, 2020
May 18, 2020
May 18, 2020
May 1, 2020
May 1, 2020
May 1, 2020
May 1, 2020
May 1, 2020
May 1, 2020
May 1, 2020
May 1, 2020
May 1, 2020
May 1, 2020
Apr 17, 2020
Mar 17, 2020
Mar 16, 2020
Mar 13, 2020
Mar 11, 2020
Feb 28, 2020
Feb 28, 2020
Feb 28, 2020
Feb 20, 2020
Feb 20, 2020
Jan 27, 2020
Jan 24, 2020
Jan 24, 2020
Jan 23, 2020
Dec 18, 2019
Dec 17, 2019
Dec 16, 2019
Dec 16, 2019
Dec 16, 2019
Dec 16, 2019
Dec 16, 2019
Dec 16, 2019
Dec 16, 2019
Dec 16, 2019
Dec 16, 2019
Nov 25, 2019
Nov 25, 2019
Nov 25, 2019
Nov 25, 2019
Nov 22, 2019
Nov 14, 2019
Nov 14, 2019
Nov 13, 2019
Nov 13, 2019
Nov 12, 2019
Nov 12, 2019
Nov 12, 2019
Nov 6, 2019
Oct 21, 2019
Oct 21, 2019
Oct 17, 2019
Oct 15, 2019
Oct 15, 2019
Oct 15, 2019
Oct 4, 2019
Oct 4, 2019
Sep 27, 2019
Sep 27, 2019
Sep 27, 2019
Sep 27, 2019
Sep 25, 2019
Sep 19, 2019
Sep 18, 2019
Sep 10, 2019
Aug 30, 2019
Aug 30, 2019
Aug 30, 2019
Aug 29, 2019
Aug 29, 2019
Aug 29, 2019
Aug 29, 2019
Aug 29, 2019
Aug 29, 2019
Aug 29, 2019
Aug 29, 2019
Aug 15, 2019
Aug 2, 2019
Aug 2, 2019
Aug 1, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 31, 2019
Jul 12, 2019
Jun 28, 2019
Jun 28, 2019
Jun 27, 2019
Jun 27, 2019
Jun 27, 2019
Jun 27, 2019
Jun 27, 2019
Jun 27, 2019
Jun 27, 2019
Jun 27, 2019
Jun 27, 2019
Jun 27, 2019
Jun 19, 2019
May 31, 2019
May 31, 2019
May 30, 2019
May 30, 2019
May 30, 2019
May 30, 2019
May 30, 2019
May 30, 2019
May 30, 2019
May 30, 2019
May 30, 2019
May 30, 2019
May 30, 2019
May 23, 2019
May 7, 2019
May 1, 2019
May 1, 2019
May 1, 2019
May 1, 2019
May 1, 2019
May 1, 2019
May 1, 2019
May 1, 2019
May 1, 2019
May 1, 2019
May 1, 2019
Mar 29, 2019
Mar 29, 2019
Mar 29, 2019
Mar 29, 2019
Mar 29, 2019
Mar 29, 2019
Mar 20, 2019
Mar 20, 2019
Mar 20, 2019
Mar 20, 2019
Mar 14, 2019
Mar 6, 2019
Feb 25, 2019
Feb 25, 2019
Feb 19, 2019
Feb 19, 2019
Feb 19, 2019
Feb 19, 2019
Feb 15, 2019
Feb 4, 2019
Feb 1, 2019
Feb 1, 2019
Feb 1, 2019
Feb 1, 2019
Jan 24, 2019
Jan 17, 2019
Jan 14, 2019
Jan 11, 2019
Jan 10, 2019
Jan 7, 2019
Dec 17, 2018
Nov 8, 2018
Nov 1, 2018
Oct 30, 2018
Oct 29, 2018
Oct 19, 2018
Oct 19, 2018
Oct 19, 2018
Oct 19, 2018
Oct 19, 2018
Oct 19, 2018
Oct 19, 2018
Oct 19, 2018
Oct 19, 2018
Oct 19, 2018