Family Offices Shift Sales Strategies
Changes in the family office advisory business and growing competition for clients and top talent are pushing firms to employ business development officers, rather than include all sales responsibilities with top relationship executives, according to a new study.

Nearly all firms serving high-net-worth individuals and multifamily offices are strengthening their sales-related roles and adding business development offices, says a new study by Family Office Exchange (FOX) entitled The Enterprise Sales Process: Best Practices in Business Development.

Although business development practices vary widely, the study says, two models are emerging: the relationship manager-led sales model, which has been standard, and the business development officer-led sales model, which is growing in popularity.

While 76% of firms serving high-net-worth individuals and family offices assign business development responsibilities to relationship managers, 65% also now hire at least one business development officer, according to the study. This conserves the amount of resources a relationship manager spends on sales.

At 55% of the firms, a business development officer is on the senior leadership team. Only one third of firms introduce principals and relationship managers to prospects at the outset of the sales process, the study shows. The remainder uses other employees, such as business development officers, to verify whether potential clients fit the firm before introducing them to key employees.

For those firms that use relationship managers to develop new business, the firms are strengthening incentive plans for business development activities and providing new sales training and coaching tools to help attract and retain top talent, according to the study.

"Despite a weak economy, an anticipated influx of new liquidity over the next several years will enhance industry growth prospects and yield numerous sales opportunities," the study shows. "Our research is a static snapshot of a sales function that is a work in progress and will change quickly," FOX says. "Firms continue to grapple with a number of persistent challenges and are still in the process of developing new tactics for selling effectively to ultra-wealthy families.

MDE Group Spins Off RIA
Risk 3.0 Asset Management is now available as an independent investment advisory firm for registered investment advisors after being spun off from The MDE Group, a $1.3 billion wealth management firm that caters to high-net-worth individuals.

Risk 3.0 Asset Management will follow the same 'risk centric' philosophy as it did as part of The MDE Group by utilizing a strategy that manages risk rather than chasing returns, according to MDE.

"Investment advisors are increasingly seeking ways to differentiate themselves in a volatile market fraught with competitive challenges," says Mitchell Eichen, founder and CEO of The MDE Group. "Over the past two years, our clients have benefited from the consistent and predictable returns of Risk 3.0 in this environment of inconsistency and unpredictability, and we are excited to extend the same benefits to other RIAs and their clients."

D. Erik Leishman has been appointed senior vice president of business development for Risk 3.0 Asset Management. He was previously vice president and RIA segment specialist for fixed income sales at Morgan Stanley Smith Barney in Purchase, N.Y., where he originated an RIA-focused sales effort in capital markets to directly capture fixed income flows from money managers and investment advisory firms.

PNC Launches HNW Client Tool
PNC Wealth Management has developed new software for high-net-worth clients to view and manipulate their investment information easier.

PNC Wealth InsightSM was developed over three years based on surveys of what wealthy individuals and their advisors want to know about their investments, says Robert Q. Reilly, executive vice president and head of PNC Wealth Management.

The new program provides a "complete, aggregated view of a clients' net worth... and a level of clarity never seen before in the industry and which clients increasingly demand," he says.

PNC surveys have found 74% of wealthy individuals want greater transparency from financial institutions and 77% said the integration of information and technology has helped them manage their investments better.

PNC Wealth Insight allows investors to see snapshots of investments or more in-depth information, and enables them to see the same information their advisors are looking at. Drag and drop features enable them to see the information in whatever configuration they want. Wealth Insight also provides an instant view of cash in and cash out each month, shows how deposits and withdrawals affect the bottom line, compares past months and years, and estimates future income, according to PNC.

Another function allows the client to compare actual allocations with target allocations. A personal balance sheet shows assets and liabilities at PNC and allows aggregation of investments with other firms to provide a total picture, according to PNC. The system can display rate of return or percentage of gain or loss and can compare that to bench marks selected by the client. Clients also can view income being generated and projected through the year.

The information can be accessed from computers and tablets that run on Apple or Android systems or on mobile phone browsers, according to PNC. App versions for iPhone and Android smart phones will be available next year.

Pershing Offers Tech Guide For Hedge Funds
Pershing LLC is offering a new guidebook that examines outsourced technology in the hedge fund market.

Entitled A Guide to Technology Outsourcing for Hedge Funds, the guide provides hedge fund managers with best practices for selecting and managing technology partners to develop a reliable and scalable infrastructure while allowing them to still focus on their core money management competencies.

"As hedge funds confront the need to diversify counterparty risk and build a more robust infrastructure, outsourcing to multiple technology vendors can be an efficient, cost effective approach," said Craig Messinger, managing director at Pershing Prime Services. "With the number of technology providers increasing, prime brokers are a valuable resource that can provide guidance and well-vetted referrals to help hedge funds select solutions that will enhance their technology strategy."

-Karen DeMasters

 

On The Move

Raymond James & Associates has recruited the advisor team of Matthew Glatz, Kevin Sletten, Adam Hawks and Keith Yoder, who have formed Hilltop Wealth Management. Glatz, Sletten, Hawks and Yoder came from Robert W. Baird & Co., where they managed $369 million in client assets and produced more than $3.6 million in annual fees and commissions. Hilltop Wealth Management specializes in providing a full range of comprehensive financial planning services for corporate executives, physicians, business owners, families and institutional clients.

CAIS, a New York-based financial technology company, has announced that Landon Stone, former Merrill Lynch alternative investments director, has joined the company as chief operating officer and general counsel. Stone is responsible for legal, compliance and operational matters at CAIS, and will also serve as a member of CAIS Capital LLC, the firm's FINRA-registered broker-dealer. In conjunction with the addition of Stone, Lachlan Cobon was promoted from managing director of finance and operations to chief financial officer.

Behringer Harvard has announced the promotion of senior executives Robert Aisner and Jason Mattox. Aisner has been appointed chief executive officer. In addition to his new role as CEO, Aisner will continue to serve as president of Behringer Harvard. Mattox, who most recently held the position of chief administrative officer, has been appointed chief operating officer.

Chase is opening seven new Chase Private Client offices in Manhattan. The offices will open at the following locations: 610 Madison Avenue (at 58th St.); 386 Park Avenue South (at 27th St.); 2 Pennsylvania Plaza (at 34th St.); 633 Third Avenue (at 41st St.); 1411 Broadway (between 39th and 40th St.); 2099 Broadway (at 73rd St.); and 55 Water Street

-Kathy Lynch