Ocorian has released survey data that predicts a boom in family offices turning to outsourcing.
Some 91% of respondents to its survey – Family Offices and The Role of Third-Party Providers – predict that family offices will increase their outsourcing of key services in the next three years, a trend that could benefit Channel Islands financial services businesses.
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, says the report.
The Channel Islands have a combined trust wealth of more than £1trn, 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: "The Channel Islands 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.
"Our islands' geographical centrality and established links with intermediaries and advisers from these regions also stand them in good stead to see increased workflows in the family office space."
Among survey respondents, 72% said they were looking for access to a "globalised network of administrative centres".
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.
About the survey
Ocorian commissioned research company PureProfile to interview 134 family office investment managers working for family offices that use third-party private client services providers to support in the preservation and protection of their clients' wealth.
The investment managers interviewed are responsible for assets under management of $62.45bn and include 63 working for multi-family offices.
The global study interviewed family offices in the US, UK, Canada, China, Germany, India, Norway, Saudi Arabia, Singapore, South Africa, Sweden Switzerland, UAE, Denmark, France and Japan.
• To view the survey report click here