The Family Office Sherpa

Family Office Interview. A new format for the Family Office Sherpa podcast interview series with Jess Parker. More of a "chat" with each of us asking questions on our respective family office experience.

• Challenges of finance staffing in offices.
• The suppliers doing well in the space
• The holy grail of investment reporting and how AI is shaping that sector
• The need for investment governance at any size
• Why have a license to provide advice?
• The "operational compression" of AI within advice
• The Myth of "shirtsleeves to shirtsleeves"
• How to select our "scaffolding" partners
• A breakdown of what's working and what's changed in our respective consulting businesses

Article mentioned in the episode: https://www.cfainstitute.org/insights/articles/third-generation-wealth-curse-advisor-solutions

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.

Drawing from direct experience and the recent podcast interviews, Shaun provides a practical overview of what makes a successful family office head of investments.

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.

There's an increasing ask from clients and contacts for what I would call "indexing" within the portfolio. Whether it's a desire to simplify the underlying holdings, increase internal management or questioning the benefits of more complex implementation, family office investment teams are increasing their use of ETFs and index funds.

But they are not a panacea, they are a vehicle. And there is no such thing as "passive" investing because every decision is an active one. Just because there's a smaller number of constituents, it doesn't mean there isn't portfolio management work to be done and decisions to be made.

In the latest episode of the Family Office Sherpa, I dig into this theme and what offices should consider and manage if they are going down this track.

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.

What started as an episode on change management, ended up into a dive into some specific examples of how offices build with the wrong objectives. From reporting (it's an output not a goal) to dashboards (a good dashboard doesn't mean your office is being run efficiently). I call out two asset classes that often confuse these objectives - Commercial Property and Private Markets.

A lot of this was off the back of this article from Amin Naj (linked below) called "The Dashboard is not the Office". Because a lot of offices are confusing dashboards and digital transformation with efficiency and governance.

https://www.networth.pro/the-dashboard-is-not-the-office/?ref=net-worth-newsletter

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.

Shaun has assisted a lot of family offices with establishing their Investment Committee Charter. The document that details the roles, responsibilities, and workings of the Investment Committee. As a member of these groups, he has seen what good looks like. This is another practical guide episode for anyone looking to write one themselves (without AI).

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.

Shaun digs into one of his favourite topics (investment reporting) and how offices are increasingly using AI tools like Claude & ChatGPT to assist in the visualisation of their investment data. He goes through some of the governance challenges that this decision can produce and the ways the established players are seeking provide this services within their offerings.

Remember - don't let the convenience of these new tools eat you family's privacy for breakfast.

Here's the link to the Presage Global Report - https://www.presageglobal.com/the-state-of-family-office-estate-security

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.

Shaun chats with Craig Dandurand on how the Tuckwell Family Office is set up, the differences between big insto and family office investing, the $100M Tuckwell Scholarship Program, what does a "fractional" role vs full time, how he got the gig, the need for a mind shift when it comes to investing, managing time vs other roles and life and focussing on what matters to the family.

He also gives some insight into how the investing talent is moving to family office and the need to think like a generalist to be successful.

Here's the Future Fund mandate Craig refers to: https://www.futurefund.gov.au/news-room/20241211--Future-Funds-New-Investment-Mandate

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.

Sometimes the biggest struggle for family office principals is the "cliff" that occurs once they have sold or moved on from their business. Shaun goes through some strategies that he has seen work well and how to mitigate some of the pitfalls.

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.

Offices seem to be prioritising investment resilience over optimisation. Shaun breaks down 5 ways he has seen them do this successfully.

UBS report mentioned in the episode: https://www.ubs.com/global/en/wealthmanagement/who-we-serve/family-office-and-uhnw/global-family-office-report.html

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.

The best tools are borne from client challenges, not theory and here Shaun provides two that he uses as part of the investment committee. Being part of the Hall Road platform allows family offices to build practical strategies that are built to assist when they see the same issue come up. In this case - how do we establish rules for assets outside the classic SAA and how do we create a form that will allow due diligence and tracking but won't bog the office down in bureaucracy.

Hall Road Investments Pty Ltd ACN 621 299 269 is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Advisors Pty Ltd (AFSL No.430126). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors. Nothing in this podcast (Communication) constitutes an investment offering of any kind. This Communication is for informational purposes only. It does not constitute investment or financial advice.