Asset allocation considerations for single family offices

Nicholas Khan-Roper, Chartered FCSI, chief investment officer and head of wealth at Advantage Family Office in Dubai, outlines the impact of different methods of asset allocation on portfolio performance

allocation

A family office is a privately held entity or company, set up for the sole purpose of managing the assets and affairs of a single family or a group of single families. Assets are personal and investable, and affairs relate to the softer side of the advisory scope. This could include advising on the purchase of a private jet or even selecting schools for the children.

The concept of the family office has been around for many years, with the Morgan family being a good early example. The House of Morgan, originally set up to manage the affairs of the family, grew into what has become the behemoth organisation known as J.P. Morgan.

A family office can be a single family office (SFO), a multi-family office (MFO), or can offer single services focused on advising ultra-high-net-worth (UHNW) families.

This article focuses on asset allocation considerations for SFOs, with a core focus around allocation to capital markets.

 

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Published: 04 Feb 2020
Categories:
  • Capital Markets & Corporate Finance
  • Wealth Management
Tags:
  • UAE
  • ultra-high-net-worth
  • UHNW
  • tactical asset allocation
  • strategic asset allocation
  • single family office
  • multi-family office
  • multi-asset class portfolios
  • family office
  • dynamic asset allocation
  • business cycle investing

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