Listen to Dan Weeks and Abdur Nimeri of UMB Family Wealth discuss family office services, latest trends and how they support their clients.

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Family office strategies are changing

We are seeing a major shift in family wealth with clients wanting more than just stocks and bonds—they’re looking for opportunities in the private market space and alternatives. This means we need to offer a different portfolio construction for our clients with an emphasis on direct investments and environmental, social and governance* (ESG) opportunities.

Direct investments can be tricky to navigate and we want to provide entrepreneurial investment opportunities for our clients, which is why we are a registered investment advisor (RIA). This structure allows for more innovation of money management including a factor-based approach to asset allocation rather than only stock selection. Factor-based investing is central to our investment philosophy. It is designed to enhance diversification, generate above-market returns and manage risk. Factor-based investing can offset potential risks by targeting broad, persistent and long recognized drivers of returns.

The evolution of investing for family offices

In recent years, we’ve seen a mindset shift and an overall evolution of the industry. The investment portfolio is not the center of everything; rather, the focus is on multi-generational wealth planning. This type of planning allows us to provide more unique solutions for our clients to care for their complex needs like minimizing taxes, growing their wealth, making an impact through philanthropic endeavors and effectively transferring wealth to the next generation.

Our clients care about how their dollars are spent so we are seeing an emphasis on impact investing and ESG. Clients want direct access to small and middle market companies so they can truly see how their dollars are at work. We are also seeing more focus on private equity fund involvement. All these trends ladder up to the overarching trend of family office investors seeking to be active in how their money is being managed.

The UMB Family Wealth approach

We actively participate as an observer and advisor to ensure we accurately reflect the wishes and goals of the family assets. Which in turn frees the family members up to focus on what matters most to them. Because we are affiliated with UMB Bank, we can offer integrated products and solutions for our clients such as deposits and lending opportunities, as well as trust administration support. We are focused on supporting our clients to reach their financial goals and objectives with the right financial resources.

UMB Family Wealth is a multi-family office focused on delivering entrepreneurial investment strategies, sophisticated tax planning and generational wealth guidance to families with significant wealth. Our affiliate UMB Bank, n.a., and the Kemper family — who have been at UMB’s helm for five generations — have served clients for more than a century. We leverage that history and experience to deliver effective wealth strategies to our clients.

*The Environmental, Social and Governance (ESG) blog posts written by affiliates of UMB Family Wealth (UMBFW) are provided for informational purposes only and contain no investment advice or recommendations to buy or sell any specific securities or engage in any specific investment strategy. Statements in those posts are based on the opinions of the author and do not necessarily represent the opinions of UMBFW. UMBFW’s interpretation of ESG factors and development of ESG portfolios will differ from ESG portfolios managed by UMBFW affiliates.  Mutual funds and other securities within an ESG portfolio exhibit varying risk and return characteristics and, due to the screening process for funds and securities held within ESG portfolios, portfolio holdings will differ from the applicable benchmark and the returns will vary accordingly, either outperforming or underperforming at any time.  You should consult professional advisors before making any tax, legal, financial planning or investment decisions. All investments involve risk, including the possible loss of principal. Past performance is no guarantee of future results.

Securities offered through UMB Family Wealth are: