Four in ten US families of the 86 per cent who defined themselves as having single family offices predict material changes in the next 12-18 months, according to a study conducted by IPI.

Four in ten US families of the 86 per cent who defined themselves as having single family offices predict material changes in the next 12-18 months, according to a study conducted by the Institute for Private Investors.   

Half of those cite a plan to reduce staff, outsource investment management, offer a private trust company or outsource non-investment services to an outside firm. Of these respondents, 70 per cent employ five or fewer employees while just 13 per cent have more than 10 serving the office.

The complexity of the families served by the family office varies, with a third supporting five or fewer family members and just two of 10 supporting more than 20 family members.

Increasing costs and lower returns seem to have inspired some families to consider the feasibility of outsourcing, IPI found. When asked which functions they planned to outsource in the next six to 12 months, asset allocation and consolidated performance reporting were most often cited.

Professional services firms, multi family offices, investment firms and private banks all might be in the running to be the firm that assumes one or all of these functions, according to IPI.

Respondents with an SFO seem very happy with the structure. Nine out of ten of those families agree that their family office is meeting the goals originally set when the office was formed. 

One hundred respondents participated in the survey. Forty-five per cent had assets over $200 million, 35 per cent $50-200 million and 20 per cent under $50 million.