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FAQ

What is the difference between an asset manager and a family office?

7. Dez 2016

An asset manager normally focuses solely on managing assets. A family office provides a whole range of additional, comprehensive, and tailor-made services, such as financial and succession planning, as well as wealth structuring, consolidation, and transfer. Clients have someone who handles all their needs, is independent, represents their interests and no-one else’s, and takes care of the tasks they don’t want to do themselves.

Where the task is broader in scope, aren’t other people involved?

7. Dez 2016

A family office makes the best possible use of a range of specialists and so minimizes the client’s workload. Specialists, by contrast, solve problems in isolation and from their own perspective as experts. As a result, they often lack the broader view and coordination that a family office can offer. The added value of this solution balances out the additional costs that may be incurred.

Does a family office give rise to additional costs?

7. Dez 2016

Cottonfield has concluded attractive master agreements with a large number of banks covering settlement and the safekeeping of securities, as well as loans and other services. Clients benefit directly from the discounts we have secured in these agreements. Optimum use of specialists leads to lower costs and improved results. Decisions are made on the basis of better information, which means they are more sustainable and better attuned to the overall context. Clients are spared a time-consuming chore and can devote the time they save to other interests. This more than makes up for any additional costs.

At what level of assets does a family office make sense?

7. Dez 2016

The key issue is not the absolute level of the assets but rather the client’s needs and the complexity of the family structures and financial situation.

Don’t banks offer family offices too?

7. Dez 2016

Many banks have proven specialists in tax and inheritance law. Some also offer financial planning for individuals. A few provide what they refer to as family office services. But for them, the incentive lies more in acquiring and maintaining assets than in providing independent advice.

Will our advisor change from time to time?

7. Dez 2016

The Managing Partners are all shareholders in Cottonfield Family Office Ltd.. That means they have a very long-term horizon.

Where are the assets deposited and who has power over them?

7. Dez 2016

Assets are deposited with a first-class bank. A “limited power of attorney” gives us access to client custody accounts, but only allows us to carry out securities transactions. It does not authorize us to make cash withdrawals or payments.

What are the compensation arrangements?

7. Dez 2016

Our schedule of fees is based on openness and transparency. Costs are clearly linked to deadlines and services. We invoice at fair rates, depending on your requirements and the tasks we perform.

How do you deal with participations / real estate?

7. Dez 2016

Both asset classes are important to many clients, so we factor them into the overall picture. Generally speaking, however, the complexity of such investments requires the involvement of specialists.