Family Office Services: Planning and Investment Trends

to listen Dan Weeks and Abdour Nimeri of UMB Family Wealth discuss family office services, the latest trends and how they support their clients.

Family office strategies are changing

We are seeing a major shift in family wealth with clients wanting more than stocks and bonds – they are looking for private market opportunities and alternatives. This means we must offer a different portfolio construction to our clients with a focus on direct investments and environmental, social and governance* (ESG) opportunities.

Direct investments can be difficult to manage and we want to provide entrepreneurial investment opportunities for our clients, which is why we are a Registered Investment Adviser (RIA). This structure allows for greater innovation in money management, including a factor-based approach to asset allocation rather than just stock picking. Factor investing is at the heart of our investment philosophy. It is designed to increase diversification, generate above-market returns and manage risk. Factor investing can offset potential risks by targeting broad, persistent, and long-recognized drivers of return.

The evolution of investing for family offices

In recent years, we have seen a change in mentality and an overall evolution in the industry. The investment portfolio is not the center of everything; the focus is instead on multi-generational wealth planning. This type of planning allows us to provide more unique solutions to our clients to meet their complex needs such as reducing taxes, increasing their wealth, impacting philanthropic efforts, and efficiently transferring wealth to the next generation.

Our clients care about how their money is spent, so we see the focus on impact investing and ESG. Customers want direct access to small and medium businesses so they can really see how their money is working. We also see a greater emphasis on involving private equity funds. All of these trends culminate in the general trend of family office investors looking to be active in managing their money.

UMB’s Family Heritage approach

We actively participate as an observer and adviser to ensure that we accurately reflect the wishes and goals of family assets. Which in turn frees up family members to focus on what matters most to them. Because we are affiliated with UMB Bank, we can offer integrated products and solutions to our customers, such as deposit and lending opportunities, as well as trust administration support. We are focused on helping our clients achieve their financial goals and objectives with the right financial resources.

UMB Family Heritage is a multi-family office focused on providing entrepreneurial investment strategies, sophisticated tax planning and generational wealth support for families with significant wealth. Our subsidiary UMB Bank, na, and the Kemper family – who have run UMB for five generations – have served our customers for more than a century. We leverage this history and experience to deliver effective wealth management strategies to our clients.

*Environmental, Social and Governance (ESG) blog posts written by UMB Family Wealth (UMBFW) affiliates are provided for informational purposes only and do not contain investment advice or recommendations to buy or sell specific securities or engage in a specific investment strategy. The statements in these posts are based on the opinions of the author and do not necessarily represent the opinions of UMBFW. UMBFW’s interpretation of ESG factors and the development of ESG portfolios will differ from the ESG portfolios managed by UMBFW affiliates. Mutual funds and other securities within an ESG portfolio have varying risk and return characteristics and, due to the selection process of the funds and securities held in ESG portfolios, the holdings of the portfolio will differ from the applicable benchmark and returns will vary accordingly, either outperforming or underperforming. at any time. You should consult professional advisers before making any tax, legal, financial planning or investment decisions. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results.

The securities offered by UMB Family Wealth are: