The Symposium, discussing the full implications of what is called Integrated Family Wealth Management, teased out ideas on how advisors can meet the complex and changing needs of UHNW families.

This is the third report covering discussions from the UHNW Institute’s 2024 Symposium, held in New York City on November 13 and 14. (See articles here and here. We also have an article from our US correspondent about the Symposium, here.)

The Institute’s 2024 Symposium, focused on Integrated Family Wealth Management, brought together practitioners and thought leaders to address the evolving complexities of serving ultra-high net worth families. 

This year’s event, The Future of Family Wealth Advising: Positioning your Firm for Success, co-hosted by Family Wealth Report, the Institute's exclusive media partner, highlighted the growing need for integrated wealth management solutions to meet the diverse and sophisticated needs of today’s families.

Chairman and CEO of the UHNW Institute, Steve Prostano, kicked off the day by welcoming more than 230 industry leaders in attendance. “This community is more than a think tank; it’s a do tank. Your engagement, input and insights are critical to our success and the achievement of our mission, which is to provide frameworks, tools and resources that advisors can apply to deliver real change. Together, this group has the power to transform the industry and how we serve UHNW families in the future.”

The Evolving needs and key trends of the UHNW family: Why providing Integrated Wealth Management (IWM) for families of wealth is mandatory for the firm of the future
The first panel of the day, featuring experts Kristin Keffeler (Johnson Financial Group), Andrea Ayres (Brown Advisory), Kelly Lora Ewart (Ballentine Partners), and Charlie Grace (Cambridge Associates - Family Enterprise Solutions), explored the evolution of modern family dynamics and their impact on wealth management. As Keffeler noted, "Today's families are far more diverse than the traditional white, male-led, heterosexual nuclear family. Many are blended stepfamilies, female-led, cross-cultural or multigenerational, creating greater complexity in their decision-making processes and wealth management needs." 

Integrated wealth management provides a structured approach for advisors to address the complex, varied needs of these modern families.

Compounding these challenges is the sophistication of many UHNW portfolios. Often built by families with professional investment backgrounds rather than liquidity generated from traditional operating businesses. As Andrea Ayres observed: “This complexity drives families to cycle through advisors in search of cohesive solutions, underscoring the need for integrated wealth management.”

New tools to navigate complexity
To address these challenges, the Symposium introduced a toolkit of innovative solutions designed to help wealth management firms assess their capabilities, identify gaps and transition toward integrated service delivery.

• WealthesaurusTM
This curated glossary, much like Investopedia, is designed to standardize key terms in the UHNW space. As experts Jim Grubman and Wally Head explained, this resource aims to reduce the ambiguity that has long hindered communications among families and their advisors, fostering greater transparency and alignment across the industry.

• The multiphasic service model 
This groundbreaking three-phase approach has been developed by the Institute to align effective service delivery with the unique needs of UHNW families, as outlined in the Institute’s Ten Domains of Family Wealth© model. It emphasizes a collaborative process between families and their advisors that includes discovery and goal setting, strategic design and implementation, and ongoing communication and monitoring. This dynamic framework helps ensure that wealth management strategies remain relevant and effective as families and external conditions evolve.

• The advisory business models grid
Building on the multiphasic service model, the Institute is creating an “advisory business models grid”. This new tool provides a framework to compare service delivery approaches used by firms that advise UHNW families regarding the needs identified in the Ten Domains. The model is applicable to firms that specialize in serving needs in one or two domains, firms that serve the needs in many domains using internal resources and firms that integrate services delivered by internal resources and external service providers in most or all domains. The model will be used to educate UHNW families, help firms better understand their service delivery approaches and compare their approaches to those of other firms. 

The benefits of integration: A keen outside perspective
Dr Amirala Pasha, a Mayo Clinic physician, brought a unique perspective to the Symposium through a recorded interview with Jim Grubman, an industry leader whose first career was actually in healthcare. Citing experience at the Mayo Clinic, Dr Pasha highlighted concepts that parallel wealth management, emphasizing the contrast between case-by-case collaboration versus true integration, which demands a cultural mindset of “teamwork first.” 

The two professionals discussed the role in each of their systems of the "expert generalist" or integrated advisor, skilled in coordinating resources for excellent client service. Dr Pasha’s insights offered family office professionals fresh inspiration to reimagine service delivery based on successful healthcare practices.

Maximizing value: Financial drivers behind integrated wealth management
Joe Calabrese (Key Wealth Management) and Kevin Casey (Pathstone) discussed the evolving landscape of UHNW advisory services and the impact of integrated services on firm profitability and growth. As the UHNW advisory market becomes increasingly competitive, driven by private equity and sophisticated clients, firms must differentiate themselves through integrated services.

Calabrese noted: “When you step back and look at our business, it’s not as complicated as we think it is - there are less than a handful of key drivers. But what’s critical is understanding how integrated services create both tailwinds and headwinds for these drivers.” The profitability drivers discussed included:

•    Revenue per client
•    Advisor capacity
•    Advisor compensation
•    Overhead expenses

While integration can drive efficiency and unique offerings, it may limit revenue and client capacity growth. The panelists emphasized the importance of balancing these financial drivers to create value for clients, employees, and shareholders.

The service model of the future
The final panel featured an exceptional group of industry leaders at the forefront of family wealth management: Tom McCullough (Northwood Family Advisors), Betsy Erickson (Arabella Advisors), Doris Meister (Wilmington Trust), Stephen Prostano (PKF O’Connor Davies) and Michael Zeuner (WE Family Offices). These distinguished experts, regarded as some of the most influential figures in the field, explored the future of integrated family wealth management and the essential pillars of service delivery, which include: the firm, the advisor, the services offered and the process.

The panelists also underscored the need for a forward-thinking service model to address UHNW families’ evolving needs. Tools such as the WealthesaurusTM, Multi-Phasic Service Model and Advisory Business Model Grid, form the foundation of this future framework, defined by:

-- Integrated solutions: Delivering holistic services that address every aspect of a family’s wealth; 

-- Dynamic collaboration: Fostering a “teamwork-first” culture where advisors, families and external experts work seamlessly together; and 

-- Proactive adaptability: Continuously monitoring and adjusting strategies to align with changes in family dynamics or market conditions.

A 22-year case study exemplifying true integration 
Symposium participants were introduced to a client family of four brothers and their families who have been clients of Northwood Family Office for nearly 22 years, beginning their journey after selling their business for $100 million CDN in 2003. Their story exemplifies the transformative impact of comprehensive, integrated wealth management across the ten domains of wealth management.

Over the years, Tom McCullough and his firm have helped their client navigate cross-border complexities, market fluctuations and evolving family dynamics, helping them address both financial objectives and long-term legacy goals. This comprehensive approach has seamlessly integrated their wealth management needs while fostering a culture of collaboration with a network of external partners to enhance service delivery.

This case study illustrated the value of an integrated approach to wealth management, which requires the "four pillars" of family wealth advising. It highlights how a holistic framework, such as the Multiphasic Service Model, enables firms to connect the dots across these domains, delivering exceptional value to clients while addressing their complex and evolving needs.

As Tom McCullough, CEO of Northwood Family Office, emphasized: "We know and are involved in the entire picture, so anytime anything comes up, we're thinking about all the other questions... It's about a proactive and integrated approach to every discussion."

Conclusion
The Integrated Family Wealth Management Symposium underscored the Institute's commitment to equipping advisors with innovative tools to navigate the complex, evolving needs of UHNW families.  Expert speakers emphasized that future-ready wealth management requires firms to function as integrators, combining diverse expertise to offer tailored, consistent guidance.

As family dynamics become increasingly complex, firms that embrace integrated, family-centered approaches will be best positioned to succeed. Ready to transform your practice and deliver cohesive, high-value services? Start integrating these strategies today to future-proof your firm and better serve today’s sophisticated clients.