Nearly three-quarters of single family offices say that preserving wealth is the most important aspect of managing their investments, according to a new survey from JP Morgan Private Bank.

Nearly three-quarters of single family offices say that preserving wealth is the most important aspect of managing their investments, according to a new survey from JP Morgan Private Bank.

The bank’s Family Office Survey covered 120 single family offices from around the world, each with over $100 million in assets under management.

While 73 per cent cited wealth preservation as the most important aspect of investment management, maximizing returns was cited by 22 per cent of family offices. Meanwhile, the toughest challenges besetting SFOs are measuring portfolio risk (cited by 25 per cent), and – when it comes to non-traditional investment – acquiring other businesses (30 per cent).

How changing tax and regulatory environments affect investments was cited as the main concern by 23 per cent of respondents, while 10 per cent cited volatility.

When it comes to working with other financial institutions, single family offices are looking for a top level of service (40 per cent), while transparency ranks as the second-biggest concern.

Philanthropy is a significant activity for the majority of family offices, according to the survey. Specifically, 36 per cent of respondents said family members engage in a family foundation with charitable missions, while 27 per cent give large amounts annually to at least one cause. When it comes to making final decisions concerning philanthropy, 44 per cent of offices involved with these activities said the principal makes the final call, while 42 per cent said an investment committee holds this power.

“No two family offices look alike as they are created to serve the needs of a specific family and evolve to reflect the needs of different generations,” said Paul Knox, head of wealth advisory EMEA at JP Morgan Private Bank. “This survey highlights the challenges for family offices in servicing the needs of multi-generational and, often, multi-jurisdictional families and the need for high quality governance and professional advice to ensure preservation of the family wealth.”

“Serving family offices is about sharing best practices,” said Samy Dwek, head of the JP Morgan family office solutions EMEA team.