FAQ

What is the difference between an investment advisor and a Family Office?
An asset manager focuses normally on managing the assets or parts thereof. A Family Office offers in addition comprehensive services catered specifically to needs arising from financial and succession planning and the structuring and consolidation of all asset classes. The client deals with one contact in all such matters. This contact represents the client's interests vis-à-vis all other parties and offers extensive relief.

Are third parties involved in the solution of complex issues and tasks?
Family Offices do not „filter" but rather optimize the involvement and use of specialists so as to provide relief to the client. Since most specialists address questions from their field of expertise only, often the overview and coordination is missing, something a Family Office provides for.  Normally, any related additional costs are compensated for by overall better results and solutions.

What additional cost does the use of a Family Office create?
Cottonfield maintains with many custodian banks highly favorable terms for securities transactions, custody and other services. Such discounts are passed on to our clients. The optimized use of external specialists leads to better quality results including lower costs. Decision making is better prepared, wholesome (when needed) and sustainable. Clients find relief and may use their time for their other interests. Therefore, any additional costs are well worth the while.

What is the minimum size of wealth required to use a Family Office?
It is less the asset size but rather the complexity of assets / liabilities and family structures that are important. It is rather the needs of a client that makes the use of a Family Office advisable.

Do banks not also offer Family Office services?
Many banks employ tax and estate specialists. Some of them also offer financial planning services for private clients. Other banks do offer so called "Family Office Services". Their incentive to do so, however, lies more in their attempt to attract new clients and to retain existing clients. Rarely do they offer neutral advice. Cottonfield is independent and works for the client, only. We do not pursue product sales budget and do not operate with on the basis of profit center thinking. The Cottonfield partners offer continuity.

Do clients have to expect frequent changes of their contact?
All our partners hold an equity participation in Cottonfield. They pursue a long-term professional horizon. Their retirement is planned to occur in steps and is not tied to a specific age limit.

At which custody banks are client assets held and who does control them?
Client assets are held at one of a selection of high quality banks. Cottonfield has access to such assets by way of a limited power of attorney.  Such power of attorney authorizes us to conduct standard securities transactions. But we may not initiate the withdrawal of securities or cash.

How is Cottonfield compensated for their work?
Our fee schedule provides for transparency and traceability. Fees are clearly related to meetings, dates and work delivered. We invoice as per agreement and at market rates.

(c) 2009 by Cottonfield Family Office AG