UBS Family Office Quarterly

Solita Marcelli, Chief Investment Officer Americas, UBS Global Wealth Management

Expectations for 2025 will be shaped by a new US president, the continued advance of AI and likelihood of the Fed cutting interest rates.

Our base case is that the Federal Reserve will make cuts in 2024 and 2025, leaving rates at 3.75%–4% by the end of next year. We also expect robust capital investment in AI to continue in the coming months as companies race to bolster their AI capabilities.

The upcoming election looks set to increase market volatility, and investors should consider the potential risks to their wealth and manage those accordingly.

Igor Jablokov, Founder and CEO, Pyron and Dr. Rob Johnston, Chief Scientist, Johnston Analytics

Family offices will be able to generate a knowledge cloud to monitor themselves and their portfolios in a way never before possible.

AI can play an important role in helping family offices obtaining rich data to support decision-making more efficiently. There are also a range of ways family offices can approach implementing AI in their own businesses.

Janet Joyce Arzt, CFA, Founder and Managing Partner, Parere Advisory

The flexible and dynamic nature of a family office can be beneficial in the long term because it allows employees to adapt quickly as the family’s needs change. However, it may also lead to staffing issues that can create bottlenecks just when that same dynamic flexibility is needed most.

Family offices can create an environment that allows existing employees to help new ones up the learning curve more efficiently.
 

Mark R. Tepsich, Family Office Design and Governance Strategist, UBS Family Office Solutions

Family offices are often operating elements of several service firms under one roof. Many families form family offices because of the complexity that is necessary to manage.

Family officeto be able to manage, administer and provide actionable insights that enable the family to execute on their goals and objectives. To be successful, it is prudent to have a framework to guide the family office in identifying functions and building their solutions.
 

Patrick J. McCurry, Partner, McDermott Will & Emery LLP

As single-family offices seek to attract and retain top talent—including both investment and non-investment executives—equity-based compensation structures are becoming both more prevalent and more bespoke.

Equity-based compensation structures for family office executives can help create a positive culture of trust, as well as attract and retain top talent that is most aligned with their long-term interests.
 

Leora Zach, CFA, Client Solution Specialist, UBS Family Office Solutions Charles Soriano, Operating Partner, Humankind Capital

Our Family Office Solutions podcast features a conversation with Charles Soriano, whose experience growing and transforming international businesses led him to develop the North Star strategic planning framework.

Designed to reposition the business of a portfolio company or direct investment, the framework provides guidance that family offices can use in defining and advancing toward newly established long-term goals.