Karen Clark of SandAire spoke to FWR about the firm's latest initiatives, centered on what has always been important subjects in the wealth management world: client engagement and the concept of wealth.

Wealth managers have historically relied on a limited set of ways to connect with their clients, which in the words of one global MFO is understandable and can be reassuring, but hasn’t stopped it from seeking deeper levels of engagement.

Karen Clark of SandAire spoke to Family Wealth Report about the firm's latest initiatives, centered on what have always been important subjects in the wealth management world: client engagement and the concept of wealth.

“Someone who has inherited wealth might have a different impression of wealth than someone who has worked for 40 years and then sold a business, or someone who has married into it,” said Clark, director and head of client team, who splits her time between California and London.

“Wealth is not just a series of numbers; it’s a series of opportunities, challenges and responsibilities. It’s very personal,” she added.

By way of background, SandAire was established in 1996 and currently has around 34 members of staff across the UK, US and Singapore. Clark said it is over the last four years that the firm has become “known in a wider element.”

Notably, its roster of clients with US connections is expanding in light of increased demand from this segment. The MFO has around $3.3 billion in assets and currently works with 18 families, around a quarter of which have connections with the US. The firm is also talking to several families in Latin America.

SandAire has a strong background in dealing with US clients, which Clark noted few UK-based firms have the ability to do - or indeed have an interest in doing - because Americans are complicated in terms of their tax reporting, etc.

“We have attracted more interest from the Americas in general. There are very few firms outside of the US that are interested in having US clients because there is some confusion and concern about the reporting that is required for US residents and citizens,” Clark said.

“Dealing with ‘US persons’ is not something we have sought to avoid and we could not have done so as many of our UK-based families have sent their children to attend US universities.  The issues that arise if they do not return or marry a US citizen are many and complicated.  We are currently anticipating several of these situations as it will change the way the family’s planning and the way we manage assets for those family members.”

Client engagement initiatives

In line with SandAire's expanding client base of individuals with US or LatAm connections, the MFO is ramping up its global efforts on understanding the concept of wealth. There are two strands to this, Clark explained: A “More to Wealth” lecture series, which launched in December, and a week-long event in Brazil this November.

For the former, Clark said the firm aims to draw on a range of figures from “various walks of life,” with the core objective being to stimulate discussion about the meaning of wealth and to understand its role and purpose in society. She emphasized that is it not supposed to be about finance, stocks versus bonds, interest rates and the global economy, for example.

The first speaker at the London lecture in December was Sir Mark Hedley, a Professor of Law at Liverpool Hope University and a former High Court judge in the family division. Clark said Hedley’s points were that wealth itself was not a gift. Rather, what is gifted to some individuals are the skills and talents that make the acquisition of wealth possible.

“Whether we like it or not, stewardship is an unavoidable incidence of wealth in the context of both gift and relationships,” Hedley said during the lecture.

Wealth should be viewed in terms of its impact on relationships in terms of both its acquisition and use, Clark said. “When relationships are damaged, wealth becomes a degenerate concept. But when relationships are enhanced, it’s beneficial.” Those were the types of concepts touched on at the lecture.

The next one will take place in May, again in London, and will be hosted by Elif Shafak, a widely-read female writer in Turkey.

“We launched this to develop a broader understanding of the concept of wealth.  Over time, the series will draw on creative minds from different walks of life.” Clark said, adding that in future lectures they’d like to also get a sports figure or a television personality to explore the pressures of receiving wealth at a relatively young age.

They'd also like to get someone who has married into wealth, and someone who has inherited a significant wealth, as each will have a unique take on the pressures, responsibilities as well as the opportunities that wealth brings with it.  They plan on expanding the locale of the lectures to accommodate their clients outside of the UK, she said.

Client quest

Meanwhile, SandAire is hosting a week-long "quest" in Brazil this November, in partnership with Leaders’ Quest, whose ethos is centered on “being good ancestors,” Clark said.

“We firmly believe that sending the “next generation” off to an economics course over a long weekend is not the way to instil a sense of value or an appreciation of their personal potential,” Clark said.

“We chose Brazil because a lot of our clients that are based in Europe have traveled to India, Thailand and China, for example, but not to Latin America. We thought it would be a good experience to broaden their horizons and bring them to the Americas.”

The idea is to invite clients from Europe, the US and Asia, as well as like-minded individuals, to consider the challenges and trends that will shape “our shared future,” she added. The week will be structured around workshops, visits and informal conversations with local leaders, academics, journalists and politicians, among others. The trip will also include a visit to a favela to illustrate different extremes of wealth and promote new ways of thinking about its challenges and opportunities.

“It [the trip] won’t be our last. We want to take it to different parts of the word and explore different concepts,” Clark said.