Asset Advisory: Advice and support in dealing with banks and asset managers
The interests of the family are not the only priorities of external financial institutions. They have to deal with conflicting interests like challenges due to constantly increasing regulatory pressure, the demands of the share holders, customer interests and competitive pressure. We have many years of experience in the financial industry, for example with regard to standard market conditions, regulatory requirements and service quality. This allows us to support our clients with expertise in order to safeguard the family's interests in the best possible way.
Assistance in complex onboarding processes
Years ago, the establishment of client relationships with financial institutions within the European Economic Area was a relatively simple and transparent process. Today, it could turn out to be a quite complicated procedure. In particular, clients from other EU countries may have to prepare for due diligence procedures lasting weeks due to the numerous regulatory requirements regarding money laundering or tax transparency. These can become almost insurmountable hurdles, especially when complex asset situations and communication difficulties coincide. We accompany our clients through the due diligence process, supporting them in the compilation, translation or certification of the required documents. In addition, we assist our clients in negotiating the most favourable conditions for cash and securities accounts.
Supervision maintains confidence
Monitoring accounts is a core task of the Family Office. This includes, for example, constant reconciliation of charged costs and settlements of FX or security transactions with a focus on fair rates, comprehensible market prices and hidden costs. Although modern banking systems are generally quite reliable, individual errors cannot be excluded and careful monitoring is therefore by no means superfluous.
Consolidated Reporting:Keeping the overview at all times
Many portfolios are structured in complex ways. One reason could be that there are banking connections with several institutes out of diversification considerations and denominated in different currencies; or there are different asset managers who manage different portions of the portfolio; or real assets and company investments are held in addition to financial assets. Keeping track of such structures requires consolidated reporting, unless all assets are consolidated in a superordinate structure such as a holding company anyway.
Risk Analysis and Risk Management as outsourced services
Starting from a consolidated view of the total assets, a precise analysis of the risk structure becomes possible. Among other things, this analysis determines whether risk diversification is sufficient and the risk of the overall portfolio is in an appropriate relation to the investment objectives. Both, precisely quantifiable key figures – such as historical volatilities, drawdowns or correlations – as well as the potential impact of future risks – such as changing economic conditions of counterparties, currency fluctuations or changes in interest rates – are taken into account. Based on the risk analysis, guidelines for a forward-looking risk management can be developed and implemented.