Family Office Glossary
Family Office Glossary
Essential terms and definitions for understanding the family office industry and wealth management concepts.
AUM (Assets Under Management)
The total market value of assets that a family office manages on behalf of clients. This metric is crucial for determining fees, operational scale, and technology requirements for portfolio management...
Learn More →Data Aggregation
The process of collecting and consolidating financial data from multiple sources including banks, custodians, and investment platforms into a unified view. Essential for comprehensive portfolio report...
Learn More →Custodian
A financial institution that holds and safeguards securities and other assets on behalf of clients. Family offices typically work with multiple custodians, requiring software integration for complete ...
Learn More →Portfolio Management
The art and science of making investment decisions and managing asset allocations to meet specific investment goals. Family office software provides tools for analysis, monitoring, and rebalancing....
Learn More →Consolidated Reporting
Financial reports that combine data from multiple accounts, entities, and asset classes into unified statements. Critical for family offices managing complex structures across various jurisdictions an...
Learn More →Performance Attribution
Analysis that breaks down portfolio returns to identify which decisions, asset classes, or securities contributed to overall performance. Helps family offices understand what drives investment outcome...
Learn More →Alternative Investments
Non-traditional investment classes including private equity, hedge funds, real estate, commodities, and collectibles. Family office software must handle complex valuations and irregular cash flows for...
Learn More →Multi-Family Office (MFO)
A private wealth management firm that serves multiple ultra-high-net-worth families, offering shared resources and expertise. Requires software solutions that can segment and maintain privacy across f...
Learn More →Single Family Office (SFO)
A private organization dedicated to managing the wealth and affairs of one ultra-wealthy family. Typically requires customized software solutions tailored to specific family needs and structures....
Learn More →Risk Management
The identification, assessment, and mitigation of investment and operational risks. Family office software provides tools for risk monitoring, scenario analysis, and compliance oversight....
Learn More →Due Diligence
The comprehensive investigation and evaluation of potential investments, including analysis of financial statements, management teams, market conditions, and risks before making investment decisions....
Learn More →Liquidity Management
The strategy and process of ensuring sufficient cash flow to meet short-term obligations while optimizing investment returns. Critical for family offices with ongoing expenses and capital commitments....
Learn More →Estate Planning
The process of arranging for the transfer of wealth upon death or incapacitation, including tax optimization, trust structures, and succession planning. Requires specialized software for complex calcu...
Learn More →Compliance Monitoring
Ongoing surveillance and reporting to ensure adherence to regulatory requirements, internal policies, and fiduciary responsibilities. Family office software automates much of this oversight process....
Learn More →Client Portal
A secure web-based platform that allows family members to view their portfolios, documents, reports, and communicate with their family office team. Essential for transparency and engagement....
Learn More →Benchmark
A standard or reference point used to measure and compare investment performance. Family offices use various benchmarks including market indices, peer groups, or custom composites for evaluation....
Learn More →Tax Optimization
Strategies and techniques to minimize tax liability through legal methods including loss harvesting, asset location, timing strategies, and structure optimization. Requires sophisticated software mode...
Learn More →Fiduciary
A person or entity legally obligated to act in the best interests of another party. Family offices often have fiduciary responsibilities requiring documented decision-making processes and audit trails...
Learn More →Asset Allocation
The strategic distribution of investments across different asset classes, geographic regions, and investment styles to optimize risk-adjusted returns based on family objectives and constraints....
Learn More →Family Governance
The structures, policies, and processes that guide family decision-making, communication, and wealth stewardship across generations. Software systems help document and enforce these frameworks....
Learn More →Related Resources
- Frequently Asked Questions
- Family Office Glossary
- Family Office Services
- Types of Family Offices
- Latest Family Office News
- What is a Multi-Family Office?
- Single Family Office Guide
- Wealth Management Services
- Estate Planning Services
- Tax Strategy Services
- Portfolio Management
- Family Governance
- Administrative Services
- Family Office vs Wealth Management
- Family Office Costs
- Minimum Net Worth Requirements
- Single Family Office Definition
- Multi-Family Office Definition
- Assets Under Management
- Ultra High Net Worth
- Alternative Investments
- Philanthropy & Foundations
- Technology & Cybersecurity
- Lifestyle & Concierge Services
- Personal Security Services
- Regulatory Compliance
- Financial Administration
- Impact & ESG Investing
- Liquidity Planning
- Conflict Resolution & Mediation
- Lifestyle Management
- Trust & Estate Structuring
- Consolidated Reporting
- Next-Gen Leadership Development
- Entity & Legal Structure Management
- Vendor & Service Provider Oversight
- Health & Wellness Services
- Single vs Multi-Family Office
- Family Office Services Explained
- How to Choose a Family Office
- Multi-Family Office Structure
- Family Governance Definition
- Alternative Investments Guide