When a bank services a family office, it is a collaborative effort that brings in professionals from different parts of the organisation to deliver the products and services that meet the client’s very specific needs.
“We have to partner with our colleagues on the private banking side, corporate banking, as well as markets and securities services to provide these customised services,” said Patrick Boumalham, Managing Director, Global Head of Wealth Sales, HSBC Markets & Securities Services.
He described how family offices are looking for a growing range of services typical of institutional investors, and how the financially savvy younger generation of a family tends to take a keen interest in how its money is managed. The increasingly sophisticated services they might use include: insight into institutional flows, electronic execution, repurchase agreement products, hedging, or shorting solutions.
In the current economic environment, concerns of slowing growth, rising rates, and inflationary pressure, are prompting family offices to adopt cautious investment strategies. There is a shift away from credit towards cash, with a focus on value preservation.
“Many family offices are on the sidelines, looking for cash and yield enhancement solutions,” said Mr. Boumalham. “We have also been active in the FX overlay space because these families have international businesses that have cash flows in various currencies and they want to take a systematic approach to manage and optimise their hedging.”