CHICAGO, Feb. 02, 2021 (GLOBE NEWSWIRE) -- The Family Wealth Alliance, a leader in North American multifamily office research, is pleased to announce the release of its Fees & Pricing in Family Wealth: 2020 Report, published in association with Schwab Advisor Family Office.
The report is based on primary research conducted among leading North American family wealth firms and includes detailed insights into fee levels, pricing methodologies, and discounting. Based on reported and observed returns on managed assets, it sets new benchmarks and best practices for fees and pricing in the family wealth industry.
FWA and its research partner, WISE, led by partner David Lincoln, conducted the study in the summer of 2020. FWA first shared results of the study at its annual Fall Forum and with research participants in November 2020. The study had 89 participating firms, with collective assets totaling $410 Billion, client relationships totaling 20,100, and mean assets per firm at $5.61 Billion. Alliance Research estimates this represents approximately 22% of the market.
“Pricing speaks volumes, serves to align your firm with your client, and helps clients understand how their fees directly relate to the valuable services you deliver,” says Tom Livergood, founder and chief executive of The Family Wealth Alliance. “Fees also have a direct bearing on your top and bottom line, allowing you to be a sustainable business. We believe that firms have no greater control over their businesses than how they charge fees. Further, this opportunity extends to building greater trust and alignment between the firm’s success and that of the client.”
Eddie Brown, National Managing Director and Head of Schwab Advisor Family Office, comments, “We sponsored this study to provide the family office community with essential data that can be hard to ascertain. Schwab Advisor Family Office is driven to ensure that family office professionals have access to critical tools and resources to future-proof their firms. We believe in taking the time to see through clients’ eyes. This study helps us do just that by revealing ways to better serve families and create strong relationships that can foster long-term growth.”
Key findings include:
- Benchmark data on what firms charge, based on various client size and complexity
- The rise of hybrid fee structures, with special focus on retainer fees
- Increasing margin pressure fueled by service creep
- Service menus and the extent to which firms outsource certain services
- The underuse of discounting controls, and cost, time, and profitability tracking
Those looking for detailed findings or to purchase the report may go to www.FamilyWealthAlliance.com. For more information contact Brandelynn Perry, Director of Strategic Development at The Family Wealth Alliance.
About the Family Wealth Alliance
The Family Wealth Alliance connects the multifamily wealth community. We are the only organization focused exclusively on supporting multifamily wealth firms, including multifamily offices, external CIOs, high-end wealth management firms, trust companies, and the family office practices of private banks and law and accounting firms. For more than 17 years, the ideas brought forth by the Alliance have touched all aspects of the family wealth industry and made a positive difference in the businesses of hundreds of firms. More information is available at www.FamilyWealthAlliance.com. Follow us on Twitter and LinkedIn.
Contact: Brandelynn Perry
Phone: 352-816-1192
Email: brandelynn@fwalliance.com