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FAMILY OFFICE
Overview
Through our Family Office offering we endeavor to serve as a CFO of the investment, legacy and business needs of wealthy families. We present a unique platform to access innovative investment ideas and deals across the product spectrum of JM Financial Group.
The family office offering aims at a successful integration of investments for personal and business needs while maintaining complete confidentiality and privacy. Aided by in-depth research and analysis our wealth advisors present investment ideas facilitated not only through JM Financial Services but also from the product offerings of the JM Financial Group. Regular monitoring and review forms an integral part of the process through well-defined risk management tools which oversees the individual families risk return profiles.
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Investment Philosophy
A. Transparency & Confidentiality
- No conflict of interest as complete transparency is maintained regarding fees and charges including from third party products.
- Wealth Manager’s interest is aligned with the client interest with focus on long term growth & preservation of client’s wealth.
- A specialized product team analyzes each product to ensure it meets the expectations of the client prior to recommendation.
- Clients are serviced by a team of senior & junior advisors along with product specialists.
- Investment goals and needs are thoroughly documented to ensure there is no disruption in continuity services even if there is a change in the advisors.
- Specialists from within the firm and across the JM Financial Group are engaged to ensure that our clients have the best minds working towards growing and preserving their assets, both on the personal and business front.
- Employment of scientific tools to match individual families risk return profile.
- Tactical asset allocation strategy to bring discipline and objectivity to investments and profit booking.
Steps to Our Investment Process
Unlike a pure investment advisory company, the scope of the Family Office is significantly more expansive. The goal is to not just maximize return but preserve the legacy of the family. There are various steps involved in order to achieve this objective.
Step 1: Discuss investment goals and objectives
We work with the family to understand their unique combination of objectives, desires, resources, constraints and goals, as well as undertake a full net worth review. We identify priority issues, map out a game plan and develop solutions together to meet the family’s objectives covering the areas of Business, Family Nest, Business & Family Continuity, Wealth Transfer, Lifestyle and Philanthropy. The depth of experience in all key financial disciplines makes us uniquely positioned to pull all the pieces of the puzzle together.
Step One
Discuss investment goals and objectives
Step 2: Prepare investment policy statement
The investment policy statement provides the guidelines for all investment decisions and responsibilities of both parties. Based on client discovery, we prepare a well thought out investment policy statement, to clearly state the client’s broad investing goals and objectives. The details include topics such as asset allocation, risk tolerance and financial goals. It also lays out the path we would follow in collaboration with the client to reach the goals.
Step Two
Prepare investment policy statement
Step 3: Create asset allocation plan & risk management strategy
The risk management framework includes due diligence process for current and prospective investments, the family office risk tolerance levels, fully integrated and well-functioning risk and investment processes, robust risk measurement and sound risk management governance structure. In conjunction with an understanding of the economic environment and investment alternatives, leads to an asset allocation decision. It ensures a diversified, risk-appropriate portfolio designed to achieve each client’s objectives.
Step Three
Create asset allocation plan & risk management strategy
Step 4: Explore special investment vehicles & tax efficient structures
We evaluate the potential mix of legal vehicles (Individual/Proprietorship to Holding Company to Private/Public Ltd / Trust/LLP/Partnership etc.) and locations to be included into the investment structure. We then design an initial investment structure taking into account non-tax objectives (family succession, wealth protection, flexibility, monitoring, philanthropic purposes, etc.), to ultimately provide our clients with a fine-tuned structure. Taxes impact returns on investments, particularly in low-return environments. We take advantage of tools and structures that can reduce the negative impact taxes can have on returns.
Step Four
Explore special investment vehicles & tax efficient structures
Step 5: Evaluate different investment ideas and Build Strategy
We work with the family to understand their unique combination of objectives, desires, resources, constraints and goals, as well as undertake a full net worth review. We identify priority issues, map out a game plan and develop solutions together to meet the family’s objectives covering the areas of Business, Family Nest, Business & Family Continuity, Wealth Transfer, Lifestyle and Philanthropy. The depth of experience in all key financial disciplines makes us uniquely positioned to pull all the pieces of the puzzle together.
Step Five
Evaluate different investment ideas and Build Strategy
Step 6: Conduct periodic review of portfolio
We monitor and review the investments to ensure that the objectives as laid out in the investment policy statement are being met. This stage comprises of review for financial Consolidation, performance measurement, Taxation & measurement. We are also account for changes that have occurred within the family and / or the economic environment to determine if any adjustments need to be made to the portfolio. Reporting is customized to each family and delivered on an annual basis.
Step Six
Conduct periodic review of portfolio
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FAQs
A Family Office is a dedicated organization or entity established by high-net-worth families to manage and oversee their financial affairs, wealth preservation, investments, estate planning, and other related services. It aims to provide comprehensive solutions tailored to the specific needs of the family and its future generations.
Family Offices offer a range of services, including investment management, financial planning, tax optimization, estate planning, philanthropy coordination, risk management, and often even lifestyle services like travel arrangements and private staff management. The services provided depend on the family’s goals and preferences.
While Family Offices are commonly associated with ultra-wealthy families, there are variations in size and complexity. Some Family Offices are single-family offices, serving only one wealthy family, while others are multi-family offices that pool resources and services for multiple affluent families.
PMS portfolios are managed actively by experienced portfolio managers who regularly monitor market conditions and investment opportunities. They make timely adjustments to the portfolio holdings to optimize returns and manage risks effectively, aiming to outperform the benchmark index.
Family Offices typically create investment portfolios based on the family’s financial goals, risk tolerance, and time horizon. They may invest in a diverse range of assets, including stocks, bonds, real estate, private equity, and alternative investments. The investment strategy is personalized to align with the family’s long-term objectives.
Yes, many Family Offices assist families in managing their philanthropic efforts. They help define charitable goals, establish foundations or charitable trusts, manage donations, and track the impact of philanthropic initiatives, ensuring the family’s values are reflected in their giving.
Succession planning is a crucial aspect of Family Office services. They help families navigate the transfer of wealth and leadership to the next generation. This may involve creating structures like trusts, educating heirs about financial matters, and facilitating open communication to ensure a smooth transition of responsibilities.