"Handling an ultra-high-net-worth family really becomes a business in and of itself," says Lisa Gray, a longtime industry analyst and author of The New Family Office: Innovative Strategies for Consulting to the Affluent.
For ultra-affluent families challenged by financial and family issues ranging from the strictly monetary to the deeply personal, multi-family offices should set out to meet their investment, estate planning and, in some cases, lifestyle needs, Gray says. Without a multifaceted approach, a wealthy family may receive incomplete or even contradictory advice from separate advisors who may or may not be operating with the full knowledge of the family's situation and goals, she says.
"You listen and then listen some more," explains Tracy Tuens-Way, a family wealth manager at Wells Fargo. "You are bringing together all disciplines for a seamless experience for the client."
Advisors at the Family Wealth Group go beyond balancing the portfolio and attempt to synchronize all aspects of a family's wealth, over multiple generations, she says.
"We ask what is the legacy and vision that the family wants to articulate. We help them lay that vision out for generations to come," Tuens-Way says.
Advisors often have to act as a translator-taking a family's vision of the future and mapping out a financial strategy to achieve the stated goals, she says.
"Some families just want to be able to articulate a family vision as opposed to dealing with investment strategy," Tuens-Way says. "Finance is a language. The family may be conversant in what brought them their wealth, but I am conversant in financial matters."
Gray, who also runs the wealth management consulting firm Graymatters Strategies, points out in her book that advisors to families such as those handled by MFOs, must "operate with the paradoxical mind-set that monetary reward is a natural by-product of doing the right thing for the client." In other words, by placing the focus on a holistic approach to providing clients with the service they demand, the advisor's business grows. More importantly, advisors feel as if they are making a positive contribution.
It also leads to referrals-and business growth. "The vast majority of clients are either referred by others or they come through centers of influence-attorneys, estate planners and also at various forums where they congregate," Tuens-Way says. "You use your own pool of contacts and here at Wells, we have a strong base within the banking world."
While market turmoil has been disastrous for other large banks, Wells Fargo got through the end of 2008 relatively unscathed. Overall, the market turmoil has worked to the Family Wealth Group's advantage, Cole says.