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CRE Insights Blog

3 Takeaways from the Family Office CIO Conference

Our annual Family Office CIO Summit features several single and multi-family office CIOs and portfolio managers all sharing best practices, investment models, and risk management strategies. In this video, Richard C. Wilson, founder and CEO of the Family Office Club, talks about the three most important takeaways from this year’s Family Office CIO Summit. To learn more about our future Family Office Conferences, visit: http://WilsonConferences.com Hello. This is Richard Wilson. I’m coming to you from downtown New York. I’m actually at the lunch break of our family office, chief investment officer conference. We’ve got about 205, 210 people downstairs who came for the event. We have 30 speakers at today’s event alone, another 30 speakers at tomorrow’s real estate investor conference. I want to give you three quick takeaways from the first half of this morning’s event. And that is, number one, we had three, $1 billion family offices on a discussion panel, talking about how to be more resourceful as a family office, how to save money and reduce fees. And a couple of the lessons that came out of that was to have superior reporting, to look at which fund managers are creating alpha versus just beta. And if they’re just creating beta, then replace them with a low cost index fund. Also, another strategy was when it comes to fund managers, if you’re investing $20 million or more, to renegotiate fees aggressively, especially if it’s a sponsored deal, a one-off deal and you’re taking the whole deal, they probably structured the fees thinking they were going to aggregate 10, 20 investors or at least three or four investors. So if you’re coming in with a big check, then you should be able to reduce fees significantly. Two other takeaways from today. One, was from Michael [Surrey 00:01:12] at [inaudible 00:01:13] holdings, his family office. And he talked about not making managers stay in a style box. If there is an active manager, let them be active, and don’t worry so much about strict style drift and keeping away from an index. Allow them to keep away from maybe where some of the market is going so they can use their intelligence for returns. And the final insight came from [Thadman 00:01:38] from Team and Wealth Management which manages over $10 billion as a multi family office. And he talked about how if the markets go down 10% and they go up 10%, you’re down for the year. So volatility can hurt you. So his main point was to be careful in volatile markets and make sure that you’re cognizant of the fact that just because things went up and down, and the index or the markets in general are at the same place they started at the beginning of the year, it doesn’t mean that you’re in the same place you started at, at the beginning of the year. And that’s gross of fees. I have net of fees. You could be in a much worse position. So I hope these three insights were valuable to you. I want to thank everyone who attended our conference here today in New York. And I hope you can join us for our next event. Please check out familyoffices.com for all of our thought leadership work, and wilsonconferences.com for our next event that I hope you can attend live. Take care.

About the author

Richard Wilson