In addition, recent government incentives to grow Hong Kong’s family office sector have reignited global interest in the city as a jurisdiction for single-family offices, according to Paul Knox, managing director and senior wealth advisor at J.P. Morgan Private Bank. “They have reminded the world that Hong Kong is already a primary hub for family offices. Hong Kong as a location for a family office is now a significant part of my conversations with clients compared to a year ago,” he says. Knox adds that he is encouraged by enquiries from clients not only across the Asia-Pacific but also globally, particularly from families in the Middle East and Europe who are seeking to establish a footprint in Asia.

Professional stewardship: the role of a single-family office

A family office provides professional stewardship to manage the wealth needs of UHNW individuals and families. Those needs can be complex and unique.

A new family office may be set up so that it serves the immediate needs of a family, typically managing its wealth and providing investment services. The office may then evolve, managing the transition of wealth to the next generation and providing philanthropic and stewardship services, Knox says.

“There is a big difference between the very mature family offices and new family offices. It is important to understand where a family office can add value in the longer term by effectively managing the returns and operating efficiencies against overall family assets,” he says. “When it works well, a family office interfaces with wealth managers, banks and other advisers to manage their affairs. It acts as a focal point for the way the wealth is being managed.”

Helping to grow multigenerational wealth

J.P. Morgan Private Bank helps clients evaluate their priorities and make informed decisions around complex situations to achieve their goals – which may include wealth preservation and growth, succession planning, family governance and legacy implementation. This is achieved through a fiduciary mindset and a professional stewardship approach that draws on the bank’s 200 years of knowledge in serving UHNW clients.

It can also offer a similar level of services to UHNW individuals who require support in areas such as wealth advice, investment and philanthropy, but who do not require a family office at that point in time.

The tailored advisory services cater to families at different stages of their wealth journey, from those considering establishing their first single-family office to those ready to expand their family office set-up to satellite locations, for example.

One of the key areas of concern for wealthy individuals is the diversification of assets to mitigate risk. Satellite family offices in secondary jurisdictions are gaining prominence as clients seek ways to address global geopolitical concerns, in addition to achieving greater diversification in their geographical footprint.

Those secondary locations, which may include Hong Kong, Singapore, Dubai and other financial hubs with unique advantages, can benefit family office clients who might have businesses and families across more than one jurisdiction, Knox says.

This is where Hong Kong has an advantage. The regulatory requirements to set up a family office in the city are relatively simple, and once the infrastructure is in place, assets in other parts of the world can be managed from Hong Kong, enabling families to divert assets across different markets, Knox says.

Global connectivity powered by institutional insights

J.P. Morgan Private Bank has a long history of working with families across all aspects of their wealth management needs, leveraging its institutional insights and global capabilities. The bank collaborates with each family and their family offices to set up bespoke strategic plans for their wealth. The holistic asset allocation guidance is tailored based on the process of organising clients’ wealth with specific intent – what J.P. Morgan Private Bank refers to as “goals-based planning”.

“Our clients are all different, and it is critical for advisers to first understand their longer-term goals before evaluating and identifying the unique combination of strategies and appropriate structures that can enable them to achieve those goals,” Knox says.

The bank, which in September was named World’s Best Private Bank (for the fourth consecutive year) by Global Finance magazine, will mark its centenary in Hong Kong next year. It is able to draw upon its deep insights into the region, as well as its global network and institutional knowledge, to bring its know-how in corporate investment banking, asset management and private banking to UHNW clients.

As part of its offering, J.P. Morgan Private Bank can also tap into the capabilities offered by 23 Wall, its institutional-level bespoke service for clients. Named after the bank’s original Wall Street address, 23 Wall comprises a global team of specialists connected to the bank’s international network, enabling them to access lines of business, facilitate knowledge sharing within its network of family offices and execute cross-regional strategies on behalf of clients.

“It’s really about helping them build the right structure for their family office and to share the knowledge that we’ve had from servicing family offices over many decades,” Knox says. “Then we can build very sustainable family offices for the future.”