In an increasingly complex environment, UHNW families in Asia seek bespoke wealth solutions
J.P. Morgan Private Bank’s global team addresses the growing complexities of multigenerational wealth with experience, resilience and adaptability
Family offices are traditionally set up to meet the needs of ultra-high-net-worth (UHNW) individuals and their families, ranging from tax planning and financial management to wealth preservation and succession planning.
In recent years, however, the family office sector has entered a period of rapid adjustment driven by changing family needs, technological advancements and the need to adapt to a global and increasingly complex financial landscape. J.P. Morgan Private Bank’s “2024 Global Family Office Report” provides valuable insights into how the preferences and priorities of affluent families have evolved, and the type of enhanced services and support they need through the holistic, forward-thinking approach offered by J.P. Morgan Private Bank.
According to the report, a broader selection of opportunities within the overall investment portfolio is a key concern of UHNW families. The shift towards diversified investment strategies is based on greater flexibility, which may translate as continuing to hold a strong position in areas like real estate while expanding investments in new technologies and emerging markets.
Another prominent trend the report highlights is a preference to outsource select wealth management services to finance professionals on a discretionary basis, while still maintaining regular consultations with family members and especially emerging family leaders.
The report also underlines additional ways family offices are evolving, including an increasing emphasis on strengthening family relationships, supporting philanthropic goals and the facilitation of intergenerational wealth transfer.
“There are multiple dimensions to consider, and that brings complexity,” says Harshika Patel, CEO at J.P. Morgan Private Bank in Asia. “In many cases, our clients are owners of large businesses, and people are shifting from a traditionally home-based approach to adopting a more globalised investment footprint. So, when planning, we often need to develop a globally diversified construct to manage their wealth and remind them that doing so on this scale is very complicated.”
In a rapidly changing world, many factors are at play in determining how a family enterprise continues to thrive from generation to generation.
“The way people made and managed money 15 or 20 years ago is very different from today,” Patel says. “To meet investors’ needs, bankers must exhibit their expertise in ways that resonate with the evolving market. They have to demonstrate sophisticated investment knowledge and be adept at leveraging proprietary digital toolkits to curate highly tailored advice.”
Indeed, as the world shifts in response to an increasingly complicated global macro environment, family office advisers require an in-depth appreciation of global issues – trade tensions, sanctions, elections and international relations – and their potential impact on everything from investment returns to decisions on where to live, where children should study, and where to base a business.
“Naturally, everyone seeks out greater certainty amid a complex and uncertain global backdrop,” Patel says. “Anyone who has spent decades building their wealth would want to protect it, not only for themselves but for their next generation and the ones after.”
With a large advisory unit and a diverse staff in Asia-Pacific, the bank is well-equipped to help its clients navigate a constantly evolving financial and technological macro environment. The team of investment experts is committed to finding a healthy balance between financial risk and opportunity by providing research and insight on the most critical issues of the time while bearing in mind that a diversity of perspectives is crucial to successful multigenerational planning.
To cite one example, the Private Bank’s in-house experts, along with a renowned futurist, recently held a session with clients to discuss the future of artificial intelligence in the context of financial services and other sectors.
“My role as the CEO is to constantly think about how we can remain 10 steps ahead,” Patel says. “While coming up with innovative ideas is relatively straightforward, the challenge lies in their execution, and in winning the hearts and minds of clients who are apprehensive about change. Allowing time for individuals to embrace transformation is an endeavour that demands patience and dedication.”
Both family offices and the Hong Kong government take a long-term view of the sector and are committed to its development. This year marks 100 years since J.P. Morgan began operations in the city, supporting its clients across generations with best-in-class advisory, insights and services. As one of the world’s leading financial institutions with global reach, the bank has the resources and the experience to help clients address the challenges of today’s fragmented world.
“We are the largest US-headquartered bank with a global footprint spanning more than 100 markets,” Patel says. “With a growing global interest in expanding businesses internationally, the bank is well-positioned to cater to its many clients seeking to diversify and establish a lasting legacy across various markets. It is incumbent on us to make sure we have the professional resources, advisers and capabilities to serve family offices which are managing investments and companies and building legacy,” Patel adds. “We can leverage the expertise of the broader J.P. Morgan organisation to meet any of their needs.”
In response to one such need, the bank created 23 Wall, named after the address of the group’s first office in New York. It caters to the growing sophistication of the world’s wealthiest families, with a combined net worth of more than US$4.5 trillion.
Natacha Minniti, head of 23 Wall for EMEA, APAC and LATAM at J.P. Morgan Private Bank, leads a team of experts and skilled advisers who work side by side with clients that have the most sophisticated interest in global markets. “Understanding their interests, preferences and complexities is key to assisting them with the full intellectual capital and expertise of J.P. Morgan globally,” she says.
Led by Andrew L. Cohen, executive chairman of the Global Private Bank and a global chair of Investment Banking at J.P. Morgan, 23 Wall is comprised of a team of senior advisers spanning 13 cities including Hong Kong, Paris, London, New York and San Francisco. The specialised team is uniquely positioned in the firm: located in the Private Bank but working holistically across all of J.P. Morgan’s lines of business.
“We support our clients across their entire balance sheet, managing the current investment environment, providing the appropriate deal flows and advising on how to prepare the rising generation and their legacy,” Minniti says.
Michelle Chen, head of 23 Wall North Asia at J.P. Morgan Private Bank, says clients may also want access to exclusive institutional investment opportunities on the bank’s platform. “Some clients might be looking for private investment opportunities or trophy assets, such as sports teams or other alternative investments which we can facilitate. Others may wish to tap into our private network to find potential partners or co-investors.
“In Asia, many entrepreneurs have built their wealth in the past decade. We are here to help their families navigate our institutional services and learn how to utilise a global platform like ours,” Chen says.
This approach underscores how financial institutions like J.P. Morgan Private Bank are responding to the growing sophistication of the world’s wealthiest individuals and families, and how they manage their wealth. They are increasingly choosing to do so through family offices that provide access to highly customised solutions, innovative digital services and intellectual capital, global reach and balance sheet.