Ultra-high-net-worth families and individuals, foundations and family offices have a new resource in Bank of the West Wealth Management Group, which has launched a new division to serve that market.
Family Wealth Advisors, which officially launched October 14, is focused on integrated wealth management solutions for ultra-high-net-worth individuals, families, foundations and family offices with more than $25 million in assets, according to Bank of the West.
“Most families have challenges and large ultra-high-net-worth families are no different,” said Steve Prostano, head of the division. “These family dynamics often need to be addressed before they can effectively put a plan in place to transfer their wealth. These issues are definitely intertwined.”
Financial advisors in 27 offices nationwide will be part of the division, offering rich clients solutions to develop and implement strategic family plans.
“We help families envision the future, translate that vision into concrete goals and objectives that the generations agree upon and provide a road map or action plan for them to follow,” Prostano told Private Wealth.
Because the division will be serving clients with complex issues and needs, Prostano said it is recruiting financial advisors with at least 20 years of experience across various disciplines, including law, investment banking and even social work.
“There is now a trend in the industry to focus on the EQ or emotional intelligence level of advisors because softer issues are becoming a more important component of what they are delivering,” he said.
Three core teams made up of trust and portfolio strategists, as well as experts in wealth planning, philanthropy, family governance and capital advisory and banking, will support the division’s senior client advisors in San Francisco, California’s Orange County and Denver.
“The general trend is a move towards direct investing and private equity investment,” said Prostano. “Families that are philanthropic are often focused on having a significant positive impact on society and they are exploring ways in which they can deploy their capital. There has been a definite move from SRI to impact investing and other more innovative approaches.”
Sustainable, responsible and impact investing (SRI) are investment disciplines that consider environmental, social and corporate governance (ESG) criteria in generating long-term competitive financial returns and a positive impact on society.
“Just as high-net-worth families have developed an interest in carrying out family values through philanthropy, they are also interested in carrying out their family values through investing,” said Carol Kroch, an attorney and managing director of wealth and philanthropic planning with Wilmington Trust in Delaware.
“They are becoming more conscious and aware of the social impact that investments can have."
Among ultra-high-net-worth families, multigenerational giving is on the rise as a way to communicate family values to children and grandchildren.
“Part of defining a family within a family is knowing your history,” Kroch said. “The older generation is trying to communicate to heirs that life is about more than the large amount of money acquired from an ancestor’s hard work or good fortune.”
Bank of the West’s Family Wealth Advisors is offering both financial and non-financial services and specialized services, such as art advisory services, he said.
“Families are not just looking for investment advice,” said Prostano. “They are looking for assistance with multigenerational succession planning, including help with family dynamics and family education.”
Family Wealth Advisors is also offering networking opportunities with other ultra-high-net-worth families once a year in Paris and Hong Kong.
“Most of these families want to talk with similar families about their common set of issues and interests,” said Prostano.
