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Family Office – IT, Trading Tools and Platforms

Technology plays an important role in creating an efficient family office. Furthermore, finding the right individuals to manage these platforms is crucial. It is important that a family office identifies  its core technology needs before choosing or creating solutions. Automation is an excellent way to keep costs under control and to mitigate risk. The IT tools and platforms that a family office should consider are:

  • Custody platform (bank, brokerage or trust company).
  • Consolidated reporting.
  • Trading and portfolio management tools.
  • Risk management tools.
  • General ledger and accounting software.
  • Client Relationship Management (CRM) tools.
  • Tax preparation software.

The selection of IT should be focused on finding ways to provide efficient reporting, trading, portfolio management, and accounting. The technology can range from off-the-shelf products to highly sophisticated, customized solutions. Much
of this can be outsourced or provided by service providers, freeing up family office resources to focus on growing wealth.
The following sections examine some of the various platforms in more detail.

Custody platform
The use of multiple custodians creates the obligation to consolidate assets. This can be done for a fee by a third party
vendor, in-house with the proper investment in systems, or through a global custodian.

The custody of bankable assets is the safekeeping and servicing of assets, either with one or multiple custodians or
banks. Global custody refers to the custody and administration of assets with one custodian, which offers
many advantages such as:

  • The consolidation of all bankable securities, financial instruments, and liquid assets, so that the time-consuming work of consolidation resides with the global custodian and not the family office.
  • The provision of a comprehensive, transparent overview of the performance of all the assets at all times via a
    consolidated investment report (providing a uniform format and standards for all assets).
  • The assets can be managed either by the custodian bank, an external asset manager, or the family office (i.e. the
    family office selects its preferred asset manager with no restrictions, and the asset manager is free to select the
    brokers for securities trading).
  • Some non-bankable assets, such as direct real estate investments, mortgages, third party derivatives, art collections, and yachts, can also be included.

For further questions please contact us directly.


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