Press Release: IPI Survey: Single Family Offices Outsource Twice as Much as Six Years Ago

IPI Survey: Single Family Offices Outsource

Twice as Much as Six Years Ago

Since 2005, an unmistakable trend is apparent in single family offices as fewer and fewer Chief Investment Officers are actually working inside the family office, according to a new survey by the Institute for Private Investors. Nearly half of the single family offices surveyed this summer by IPI outsource the Chief Investment Officer function. In 2005, just one out of four outsourced the investment function, and in just six years, the number has nearly doubled.Importantly, six in ten respondents in this latest survey by IPI report assets over $200million, with one in five overseeing $1 billion plus.

Assets Managed by the Single Family Office Make a Difference

Over three-quarters of those single family offices overseeing less than $500 million outsource the function, according to the survey.Hiring one firm to assume the duties of a Chief Investment Officer has become a popular choice. Mandates given to these firms encompass recommending managers or funds, and their range of duties often include tactical or strategic asset allocation recommendations, as well manager selection and monitoring. In some circumstances the firm places assets in comingled funds or limited partnerships for economies of scale advantageous to both the family office and the firm.

Who will Gain From this Trend?

Investment firms, consultants, wealth boutiques, multi-family offices and even private banks could all gain assets as this trend toward outsourcing escalates, according to IPI.“How the firms will prove their superiority over both one another and the in-house capability raises the issue of metrics for an advisor, sometimes referred to the advisor report card,” said Charlotte Beyer, IPI founder and CEO. “The firms which can most concretely show their ‘value-add’ as shrewd allocators and astute fund pickers will likely prove to be the winners in this race for new business.” IPI surveyed its membership of 1,100 private investors who have minimum investible assets of $30 million. Survey respondents (71) represented close to 25% of the IPI membership. The single family offices surveyed manage assets for an average of 2.8 generations and 26 family members and have an average of seven employees on staff.

About the Institute for Private Investors (IPI)

The Institute for Private Investors (IPI) (www.memberlink.net) is a trusted provider of educational and networking resources for ultra high-net-worth investors and operates as an independent U.S. subsidiary of Campden Media. Founded in 1991, IPI provides a safe haven for investors to communicate with each other, and their advisors, about their wealth management approach. IPI offers education and an online network to 1,100 investors and has offices in New York and San Francisco. In 1999, IPI created the nation’s first private wealth management curriculum for principals and continues to collaborate on weeklong programs with The Wharton School at the University of Pennsylvania. An affiliated company, the Investor Education Collaborative, LLC, was formed in 2004 to offer experiential educational formats and online classes.

About Campden Media

Campden Wealth (www.campdenwealth.com), founded in 1987, provides education, news, research, conferences and other networking opportunities to principals of ultra high-networth financial and business-owning families, and the family office executives and trusted advisors who serve them. Campden produces global conferences and proprietary research serving the ultra high-net-worth, multigenerational family community, as well as Campden FO (Family Office) and Campden FB (Family Business), two market-leading magazines and websites that inform this highly targeted audience. Campden Media is a global business with offices in London, New York and Singapore.

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