Investments will remain a core proposition to family offices globally, leaving non-core responsibilities to outsourcing, according to a report from UBS. 

The ‘2024 Global Family Office Report’ found these core tasks include managing investments and performing supporting administration. 

Two-thirds of family offices only employ up to 10 members of staff, with 20 per cent employing only three or fewer. In 72 per cent of family offices, at least one employee is a family member. 

The report said this is typically not enough to “carry out the full gamut” of services clients might expect “from investment management through to bookkeeping, philanthropy, tax and lifestyle support”. 

The report also found that while family offices can cover a wide range of a family’s needs, many appear to have a narrower scope and room to professionalise further.  

“For instance, when it comes to the family office’s key role of investment management, the picture is mixed,” the report said.  

“An average of just 56 per cent of family offices globally have an investment committee, with only 44 per cent having a documented investment process.” 

While investments are still a core in-house proposition, non-core services are outsourced. 

Some 85 per cent of family offices perform strategic asset allocation in-house, along with portfolio risk management (78 per cent), financial reporting, bookkeeping and accounting (all 71 per cent). 

However, legal services (67 per cent of family offices), cybersecurity (57 per cent) and tax planning (53 per cent) are outsourced.