How To Find The Latest Data & Insights Needed To Run Your Family Office
We live in a day and age where so many decisions are made with the help of data and insights. Currently for investors those decisions could relate to a geopolitical shifts, a potential recession looming, new asset classes coming online and on top of that, changes in expectations around returns that look beyond profit.
In the family office space, it has traditionally been challenging to know what other players are doing which makes it more difficult to include external perspectives when making decisions.
Enter The Reports
There are various reports that are released annually, or on an ad-hoc basis, that help family office industry professionals identify emerging trends in the market or simply serve as a benchmarking tool for industry standards. These reports vary quite a bit in terms of who they survey, what family office data they cover, the brackets of wealth or which regions they focus on —all important considerations when looking for the best comparisons.
The following are just some of the leading reports along with a short overview of what they cover.
Citi Family Office Survey
Total Respondents: 197 (79% or 156 were Family Offices)
Regional Breakdown: 42% – North America, 22% – EMEA, 21% – Latin America, and 15% – APAC
AUM: ~40% of the family office respondents managed assets over $500 million of which 54% (34) managed $1 billion plus. 60% of respondents managed less than $500 millio.
The Citi Private Capital Group released their 2021 iteration of the Family Offices Survey report that they publish annually in the month of September. The survey was conducted as part of their 6th Annual Family Office Leadership Program that was conducted in June of the same year. The survey was aimed at identifying the emerging trends in high pace financial markets, the global economy, and portfolio management.
The survey drew responses from 197 respondents, out of which 80 percent were individuals directly involved with a family office and the rest were ultra-high-net-worth individuals(UHMWIs) who did not have a family office. Out of the total sample pool, 42 percent of the respondents were from North America, 22 percent from the EMEA region, 21 percent from Latin America, and 15 percent from the APAC region. The salient findings of the report include, among others, the response of respondent family offices to the rising global inflation, high levels of cash holdings, and the much healthier performance of general portfolios as compared to past years.
Global Family Office Report 2021
Total Respondents: 191 SFOs
Average AUM: $775 million (Total: $148.2 billion)
Average Net Worth of Families: $1.2 billion
The 2021 edition of the annual Global Family Office Report by the UBS group covered a sample size of 191 of the world’s largest single-family office(SFO) groups. These SFOs had combined assets-under-management(AUM) of $148.2 billion and the individual net worths of the families they manage averaging at $1.2 billion. Out of the 191 respondents, 50 percent were based in Europe, 14 percent each from North America and Asia-Pacific, 11% from the Middle East, 7% from Latin America, and 2% from Africa. Among other things, the report explores the strategic disinvestment of family offices towards low yielding bonds and cash, the emergence of pandemic-dictated high valuations, and the interest of respondent FO’s in emerging technologies.
Global Family Office Report: Regional Series
By Campden Research
Total Respondents: 385
Regional Breakdown: 108 – Europe, 76 – Asia-Pacific, and 179 – North America
Average AUM: $1.1 billion (Total: $425 billion)
Average Net Worth of Families: $1.7 billion
The Campden Research Group released its first Global Family Office Report in 2014 as a single, comprehensive survey and analysis. However, in order to offer more in-depth and granular analysis of the FO’s this year 3 separate regional reports have been released, each focusing on the three major regions of North America, Asia-Pacific, and Europe.
The report features respondents from over 385 family offices globally out of which 108 are from Europe, 76 from Asia-Pacific, and 179 from North America. It includes a broad range of analysis on topics like FO investments, operational costs, technology use in financial markets, risk and risk management, cyber security and succession planning. The total net wealth of the family offices included in the global series stands at $655 billions and the net AUM exceeds $425 billions. On the other hand, the average family wealth per respondent stood at $1.7 billions.
Considerations For Single Family Office Compensation
Total Respondents: 217 SFOs in U.S.
Data on 827 incumbent employees, including 366 executives and 461 staff members
The latest report by Morgan Stanley benchmarks the importance of competitive compensation for single family offices. The report takes a deep dive into industry standards for the various pay structures for talent acquisition and retention in the financial sector ranging from upper-level investment analysts to executive assistants. The survey included responses from 217 single family offices across the U.S. reporting data on 827 incumbent employees, including 366 executives and 461 staff members. The key findings of the report include the differences in executive salaries in the different regional markets across the world, the value of incentive-based compensation, and gender inclusivity among the respondent family offices.
Investing in Venture Capital 2021-2022
By SVB Family Offices and Campden Wealth
Total Respondents: 139
Regional Breakdown: 49% in North America, 27% in Europe, 14% APAC, 7% in Central and South America, 3% in Middle East, 1% in Africa
Average AUM: $989 million (SFO); $1,934 million (MFO)
Average Net Worth of Families: $1,316 million
First released in 2020, the annual Investing in Venture Capital has become the go-to resource for mature FO’s as well as early stage FO’s who wish to benchmark their activities or just embark on their venture capital investment journey. The latest iteration of the report was released recently in January 2022 and drew responses from 139 ultra-high-net-worth families and family offices with demonstrated experience in VC investing. The report includes recent performance of family offices with venture and ESG portfolios, and direct and co-direct strategies.
2021 State of the Family Office Industry
By Family Office Exchange
Total Respondents: 125
The 2021 State of the Family Office Industry is the latest benchmarking report of FOX’s ongoing research into family offices to identify key metrics of emerging trends, areas of improvement, and future plans. The 2021 survey includes responses from 125 family offices on a variety of topics including office operations, risks, staffing, technology, enterprise governance, succession, rising gen education, family philanthropy, etc.
Global Family Office Compensation Benchmark Report
By Agreus Group
Total Respondents: 1200 (Primary Data) and 671 (Secondary Data)
Regional Breakdown: UK (39%), US (27%), Asia-Pacific (12%) and Europe (11%), and the Middle East (6%). The remaining 5 percent of the respondents belonged to various countries in the Africa and the Latin America regions
Average AUM: Range of $250 million – $2 billion
The benchmark report, published with data collected prior to the pandemic, highlights the global trends in compensation in the family office industry. It includes primary data from Agreus’ internal database of over 1200 family offices and secondary data from a survey of 671 Family Office professionals. The UK drew the most respondents at 39 percent, followed by the US at 27 percent, Asia-Pacific and Europe at 12 and 11 percent respectively, and the Middle East at 6 percent. The remaining 5 percent of the respondents belonged to various countries in the Africa and the Latin America regions. The report focuses on the hierarchy of CEOs, gender inclusivity, and staff salaries.
Shifting Horizons: Insights Into How Family Offices Are Responding to Rapid Economic and Social Change
By BNY Mellon Wealth Management
Total Respondents: 200 (56 were single-family offices while 144 were multi-family offices)
Regional Breakdown: 50% from the U.S. and the rest from other countries (U.K., Canada, Switzerland, Luxembourg, Hong Kong, Singapore, Germany, Italy, Brazil, Australia, India, South Africa)
Minimum AUM: $150 million
In its first family office survey, the BNY Mellon Wealth Management group explores the response of 200 family offices towards the recent socio-economic changes amidst the COVID-19 dictated public health crisis. Among the 200 respondents, 56 were single-family offices while 144 were multi-family offices from major global markets like the US, UK, Canada, India, Hong Kong, Germany, and Singapore among others with a minimum AUM of $150 million. The survey draws results on the interest of respondent FO’s towards philanthropic investments, next-generation and succession planning, and crypto investments. It also explores the private banking services as offered by the respondents to their clients and the awareness of FO’s towards the recently proposed Family Office Regulations Act of 2021.
The International Family Offices Journal
By Globe Law and Business
The International Family Offices Journal is a subscription-based issue of quarterly reports on various topics like family office structure, governance, investment approaches, and succession planning. The journal also features regular interviews with industry leaders, reports by countries, book reviews, technology tips, and relevant news alerts from the Society of Trust and Estate Practitioners(STEP).
Family Office Industry Briefing Series
Total Respondents: 3500 family offices across the globe along with detailed insights from 16,000 professionals working within them – Multi-Family Offices (MFOs): 61%, Single Family Offices (SFOs): 39%
Regional Breakdown: North America: 38.2% (SFO); 61.8% (MFO), Europe: 24.9% (SFO); 75.1% (MFO), Asia: 34.6% (SFO); 65.4% (MFO), Rest of world: 47.5% (SFO); 52.5% (MFO)
AUM: Up to $100m: 25%, $100m – $1bn: 33%, $1bn – $2bn: 15%, $2bn – $5bn: 13%, $5bn+: 14%
In this extensive three part report, FINTRX, in partnership with Charles Schwab, provides light to various data points compiled over a massive sample size of over 3500 family offices across the globe along with detailed insights from 16,000 professionals working within them. The report paints a general profile of the various family offices across the globe, a profile on the investments that they make in terms of AUM among other factors, and finally a profile of the staff they employ. It also features an in-depth QnA with the Schwab Advisor Family Office.
World Wealth Report
Total Respondents: ~2,900
Regional Breakdown: APAC: 48%, North America: 19%, Europe and Middle East: 26%, Latin America: 7%
Net Worth: $1m – $5m: 25%, $5m – $30m: 31%, $30m+: 44%
The World Wealth Report provides detailed insight into high-net-worth-individuals with data compiled by Capgemini’s extensive primary research. In its 25th iteration, the annual report focuses on macro-environmental changes, changing client expectations and profiles, increasing roles of technology in the financial sector, and emerging trends in modern business and operating models. Salient findings of this report include the emergence of North America as the leader in HNWI population and wealth, the importance of hybrid advisories among wealth management firms, and new-age competencies in finance and the willingness of FO’s to embrace, thus shifting away from traditional investment strategies.
Family Office Handbook
By Deloitte Private
The Family Office Handbook serves as the one-stop guide for high-net-worth-individuals(with cumulative investable assets in excess of $250 million) who might be looking to establish a family office as opposed to relying on financial institutions to cater to their wealth management needs. It provides a detailed insight into what family offices are, how they operate, their operational and business expenses, and how their operations can be tailor made to serve the specific needs of a family. In addition to that, it also covers the use of technology in the operations of a family office, the various tax and regulatory measures involved, and the various risk mitigation strategies that a newly established family office should take into account before establishing a portfolio.
Family Office Benchmarking Study 2021
By Marsh Private Client Services
Total Respondents: 100
In response to the market upheaval created due to the COVID-19 pandemic, the Marsh Private Client Services released the Family Office Benchmarking Study 2021 to shed light on the various risk factors that are relevant to the operations of family offices and what mitigation and insurance planning strategies can be employed for the same. Marsh Private Client Services, with their 40 years worth of experience in helping family offices and high-net-worth-individuals mitigate risks, drew responses from nearly 100 multi and single family offices with insurance policies averaging $500,000 in annual premium. The report lists properly risks, personal liability, and natural disasters as chief areas of concern for clients while establishing minimum standards of family insurance programs for the risk factors mentioned.
Looking beyond the reports
These annual benchmarking reports ensure that the family offices operate at their highest levels of professionalism and competence since they are essentially responsible for handling millions of dollars worth of assets belonging to ultra-high-net-worth individuals. They also help bring out emerging trends in the market so that the FO’s can always stay ahead of the curve and anticipate the next big thing to come and adapt their portfolios as such. As we move into the age of data it will be interesting to see how this sector changes.