Wealth management is becoming increasingly commoditized. Broad trends around digital technology adoption, regulatory compliance in the banking sector and a pivot by big banks into the wealth management space has led to rising industry uniformity.
While the prevailing generic model offers scalability and the ability to accommodate the wealth management needs of the growing global high-net-worth individual (HNWI) market, it's a value proposition that falls short of meeting expectations among the world's ultra wealthy.
Certainly, while large, vertically-integrated wealth managers offer individualized investment advice and portfolio construction, their monolithic structure within traditional financial institutions can limit flexibility. This can constrain their ability to allocate assets in a manner that effectively leverages a diverse range of global investment opportunities.
The agility and nimbleness offered by an independent boutique family office, on the other hand, is able to easily pivot and exploit emerging opportunities to unlock market-beating returns from a range of local and offshore investments.
More importantly, their size and multi-disciplinary focus offers hyper-personalised service and access to a wide range of bespoke products that meet unique and highly individualized client needs. They are also better positioned to create and preserve generational wealth through their more personalized engagement and services offering.
This value proposition is resonating with a growing number of ultra-high-net-worth individuals (UHNWI) and families, which has served to attract more clients away from the bigger fund and wealth managers.
In addition, the rise in relevance and effectiveness of passive investments in global markets offers UHNWIs an opportunity to easily and cost-effectively access mainstream investments, which offers a wealth preservation foundation on which to build their portfolios.
These UHNWIs then rely on the bespoke advice and services offered by boutique family offices to structure their tax affairs, manage their succession and estate planning, manage properties and consult on wealth management.
With regard to the latter, UHNWIs look to boutique wealth managers to deliver alpha with individualized direct investments into a broad array of asset classes, including traditional investments such as equities and bonds, with additional exposure to unique private equity and real estate opportunities.
Managing and monetizing private assets within these markets requires a hands-on approach to balance risk and returns, which boutique players can uniquely position to offer these discerning investors.
Whereas large wealth managers generally do everything at scale, boutique wealth managers can engage closely with the underlying investment to play a more active role. They also create opportunities for UHNW investors to exercise more control in their investments.
As such, there has been a 10-fold increase in the number of global UHNW family offices since 2008, according to the most recent EY Family Office Guide report, and collectively controlled in excess of $4 trillion in assets at the end of 2018.
Stonewood Wealth Management International Limited, through its distribution partnership with Stonewood Wealth (Guernsey) is one of those providers, this boutique family office, offers expertise and bespoke alternative investment solutions with a focus and proven track record in offshore asset management, with specific industry expertise and experience in private equity and real estate.
Stonewood Wealth Management International Limited, was founded in Guernsey in 2011 to provide global investment opportunities primarily to UHNW families that wish to invest alongside its founding partners, who have a substantial portion of their personal capital invested in the business.
Stonewood's team of experienced wealth and asset managers embrace a contrarian, value-orientated investment approach that, first and foremost, preserves capital by investing in real assets backed by underlying value. This includes lucrative property investment opportunities through Stonewood Alchemy Real Estate (SARE), and other bespoke investment entities that it manages for on and behalf of its global family office client base.