Ocorian, the global provider of services to high net worth individuals and family offices, has released survey data that predicts a boom in family offices turning to outsourcing.
91% of respondents to Ocorian’s survey predict that family offices will increase their outsourcing of key services in the next three years, a trend that could benefit the Channel Islands’ financial services industries, which have long been specialist centres for private client-related services.
The reasons for the increase include family offices seeking more sophisticated services, growing regulatory requirements, outsourcing being more cost effective, and an increased risk appetite among underlying families.
The Channel Islands have a combined trust wealth of more than £1 trillion, and family offices have been a growing area of expertise for the islands for more than a decade.
Amy Collins (pictured), Head of Family Office at Ocorian, said that the islands are well placed to service family offices who are seeking greater outsourcing: “The Channel Islands are renowned centres for private client services so are often the first ports of call for family offices. We benefit from a mature industry with experienced professionals who have expertise in building long-term relationships and providing management and administrative support.
“Most family office work originates from Europe and the US albeit that the principals behind the family offices are more global and our islands’ geographical centrality and established links with intermediaries and advisors from these regions also stand them in good stead to see increased workflows in the family office space.”
72% of respondents to the survey said that they were looking for access to a ‘globalised network of administrative centres’, something that Amy says firms like Ocorian are already seeing.
“At Ocorian we have offices across the world and our people work really closely together on cross-border private client work,” Amy said. “Ultra-high net worth individuals and families are increasingly global so it wasn’t a surprise to see global access as a must-have requirement for most of the family offices we surveyed.”
Another reason for an increase in outsourcing is a growing risk appetite, according to the survey; 87% of respondents predicted an increase in the risk appetite of their clients over the next year.
“Family offices have quite rightly taken a conservative approach to risk in the past two years given the high levels of volatility and uncertainty in global markets,” said Amy. “That, however, is changing and there is an increasing appetite for risk across the sector as they look for higher returns.”