Advancing family office solutions

Wealth in Asia is growing rapidly, with family offices emerging as the guardians of prosperity for affluent families.
Industry reports state Thailand is expected to see a surge in its dollar millionaire population of 24% by 2028. Against this backdrop, Thailand is also seeing a notable rise in the number family offices, which oversee the intricate financial and personal affairs for the ultra-high net worth (UHNW) cohort.
Driven by the country’s increasing wealth, there is an evolving need for personalised financial management and a focus on long-term financial planning. These family offices are looking to implement a more strategic, professional and organised approach; a transformation that presents both opportunities and challenges, requiring a harmonious blend of tradition, innovation and thoughtful navigation to ensure they grow and remain effective.
Professionalisation of family offices will offer better wealth preservation and growth. By learning from established family offices around the world and considering local cultural differences, local family offices can build strong governance and manage risks effectively.
Developing a sound investment strategy is crucial for the professionalisation of any family office, and by working with experts, family offices can receive advice on creating comprehensive plans that align with the family’s future goals.
Running a family office typically requires access to a wide range of expertise, including financial advisors, investment managers, legal experts, tax consultants, and even philanthropy experts. Julius Baer advocates the importance of integrating external experts and technology into family office operations to provide comprehensive wealth management solutions. Such expertise is crucial in making informed decisions, managing risks, and most importantly ensuring compliance with local and international regulations.
In the Julius Baer Family Barometer Report 2023, a key challenge identified for wealthy global families was navigating complexities in investment-related matters. Equally important, however, were wealth-related matters beyond investments, and the report revealed families are particularly interested in structuring of family assets and wealth, as well as establishing collaborations with advisors.
For example, wealthy families in Thailand are likely to have family members and investments all over the world. The regulatory environment globally is diverse and constantly evolving; different markets have varying regulations concerning wealth management and investment. It is vital to keep up with these changes, and navigating these complexities requires a comprehensive understanding of local laws to ensure compliance.
Given the level of maturity and resource limitations faced by many family offices, Julius Baer looks to add significant value by collaborating closely with clients. The bank’s family office experts will partner with UHNW families and their family offices to help them navigate these complexities and accessing the Julius Baer platform and ecosystem.
A prime illustration is the Julius Baer Outsourced-CIO service, which provides access to the bank’s chief investment officer office to formulate professional investment guidelines. Through this partnership, family offices can leverage decades of experience and embrace an institutional approach to investment management.
Succession planning is another critical aspect of family office operations, particularly in Thailand, where family businesses are a significant source of wealth, and these two are often closely intertwined. Professionalising family offices can facilitate structured succession planning processes, ensuring a smooth and orderly transition of leadership and wealth to the next generation.
This involves creating clear governance frameworks, defining roles and responsibilities, and establishing mechanisms for conflict resolution. Effective succession planning helps in maintaining family harmony and business continuity, thereby preserving the family legacy.
Many wealthy families in Thailand are increasingly focusing on investing in companies that solve social and environmental challenges, have a positive impact or give back to society. In fact, the younger generation in Thailand are keen to embrace philanthropic causes and environmental, social and governance investments.
A professionalised family office can significantly enhance the impact of philanthropic efforts through strategic planning and effective implementation. By leveraging expertise in social impact investing and philanthropy, family offices can identify meaningful causes that resonate with them, measure the impact of their contributions, and create lasting positive change.
We recognise that for mid-sized family offices, allocating funds to talent acquisition, technology and infrastructure development can be challenging, especially when they are balancing other financial obligations and objectives. By tapping into the expertise of investment professionals and adopting a structured investment approach, family offices from Thailand can optimise investment returns through well-planned asset allocation and diversified portfolios.
The professionalisation of family offices in Thailand presents a wealth of opportunities for enhancing wealth preservation, accessing expertise, facilitating succession planning, and maximising philanthropic impact. The Julius Baer Family Office team in Asia works closely with their Thai joint venture SCB Julius Baer to provide comprehensive services to their clients.
Successfully navigating these opportunities and challenges requires a balanced approach that respects family values, while embracing the best industry practices. By doing so, family offices in Thailand can achieve long-term sustainable growth and effectively manage the complexities of wealth across generations.
Christos Anagnostopoulos is head of family office service advisory in Singapore for Julius Baer.