07 February 2019
I’ve just come back from a very interesting week in the US. First stop was Silicon Valley which included attendance at the excellent MorningStar Plug and Play event. Invited by the Head of Fintech at MorningStar, we showcased Finlight to family offices and end-investors. Next up was an East Coast visit and a catch up with other family offices and our New York team. I made a few observations about the different European and US markets.
As on this side of the pond, we are the only solution focused on helping end-investors ensure that their financial best interests are protected. All other solutions concentrate on helping the ‘sell sides’ (investment advisers and wealth managers) simplify their life and minimise any fiduciary obligation. In fact, I was quite surprised that only 1% of US financial advisers are actually registered fiduciary.
On the other hand, Excel-based reporting is no more, being supplanted by integrated e-reporting platforms and SaaS portfolio management systems. Nonetheless, these remain very accounting based, focusing on past-performance based analysis rather than forward looking analytics. Views on building truly personalised strategic asset and risk allocations to protect each principal’s best interests do not seem to be the zeitgeist yet.
Finally, US family offices are very keen to see how investment coverage can be improved. They want to minimise the risks of missing out on a good opportunity. As such, many valued the idea of a global knowledge network.
Do you agree with my observations? Let me know.
With very best wishes
Co-founder and CEO