INTHEBLACK November 2025 - Magazine - Page 23
“The mindset of Asian families is to have control, and it
is not always easy to find someone who can fit into the
family culture, understand the business and provide
coaching to the next generation.”
KARINA WONG, EY
or stewards of significant family wealth, heirs
do need to have a minimum of financial
knowledge and that can be challenging
because not everybody has that acumen.”
He suggests starting that education as
soon as possible to ensure heirs understand
the purpose and values of their family office.
Although a single-family office may be
suitable for UHNW families, Werdiger
recommends a “virtual family office” model
for those with A$100 million to
A$500 million of investible net assets,
whereby investment professionals are paid
on a part-time or contract basis.
“If it’s a virtual team, you’re more nimble
and more flexible,” he says. “These individuals
come from a very strong investment
background and can be virtual adviser or
chief information officer to a dozen families
or more. This way, you’re tapping into their
experience across other families.”
Compared with their North American
and European counterparts, APAC family
offices are typically younger and more likely
to feature first- or second-generation
wealth holders.
Given the longer history of American
and European family offices, Wong admits
that APAC counterparts may lack the
long-established governance frameworks seen
in the West and be less focused on compliance.
She expects the gap to narrow in the coming
years as APAC family offices respond to
increasing complexity of asset allocation, tax,
estate and philanthropic planning.
At the same time, Wong predicts there
may still be some ongoing reticence among
Asian families to hand over too much control
to external advisers. “The mindset
of Asian families is to have control, and it
is not always easy to find someone who
can fit into the family culture, understand
the business and provide coaching to the
next generation.”
NO TURNING BACK
What seems clear is that APAC’s
family-office boom is not a fleeting trend,
but a structural shift.
As significant wealth moves into new
hands, the decisions being made in offices
across the region will influence financial,
philanthropic and technological investments
for decades to come. Khoury believes
financial security — whether it is in the
Middle East, Asia or elsewhere — will
continue to be a strong theme as family
offices weigh up where and in what to invest.
“Dubai, for example, has become a
safe haven for people to get away from
conflict and to try to build wealth,” he says.
“Everybody ultimately wants the best for
their family.”
Wong says that given the scale of APAC
wealth, it will be essential for governance
protocols and regulatory requirements
to stay up to speed in Hong Kong and
beyond. “Think of cryptocurrencies — you
need to have proper governance of these
investments, as well as appropriate
obligations to make sure that the family
office runs properly,” she says.
Amid fears of an ongoing trade war
and geopolitical risks in the next year,
Koh urges family offices to team up with
their wealth managers to ensure their
portfolios are diversified and have an
“all-weather strategic asset allocation
to stay resilient during these volatile times”.
Werdiger agrees, noting that
unpredictable external factors are often
lurking in the background. “Volatility
comes and goes, and will always be around,”
he says. “So being aware of macro
investment issues and the risk of market
dislocations is important at any time.
“The starting point is to make sure
you have a very high-level view of risks
across your entire investment portfolio.” ■
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