Hong Kong's family offices differ from those in the mature markets of Europe and the United States on several counts - including structure, family priorities and outsourcing.
UBS/Campden Research shows that 81 per cent of Asia's family offices are linked to core family businesses, a far higher percentage than in Europe, where the family office and the family business are more distinctly separated.
Sharper distinctions between the family business and the family office in the US and Europe mean each has a different group of people on their board, says Esther Heer, deputy chief executive officer of BSI Asia. 'Each board has different and defined roles to look after separate aspects of the family's wealth. Some family offices there also serve the needs of multiple families.'
The UBS/Campden report also shows that confidentiality is the No1 priority of Asia-Pacific families compared with Europe, where controlled and consolidated management of family wealth is the leading concern. The focus on privacy may reflect the typical wariness of Asian family businesses about granting access to outsiders.
'A lack of trust is a common reservation, and longstanding relationships are especially key in establishing a family office in Asia, as compared to the US and Europe,' said Thelma Kwan, head of Asia-Pacific wealth advisory at Barclays.
In the West, many family offices choose to outsource asset management to the banks, but in Asia, family offices tend to manage their assets themselves, says Credit Agricole Private Banking.
