The Family Office Founder speaks to Argaam about the key success factors in investment and wealth management

An investor’s success is built on basic main foundations the most important of which is to define investment goals and the risk appetite as part of a written financial investment plan, advises Abdulmohsin Al Omran, CEO of The Family Office which he founded in 2004 as the first wealth management firm of its kind in the region. Since then, The Family Office has preserved and grown the wealth of more than 200 investors in the Gulf, including families, individuals, and institutions. Abdulmohsin also highlighted the importance of diversification, and that a successful investment manager should design long-term portfolios that feature multiple assets. He also cited the “piggy-bank” policy as the best investment strategy whereby amounts are added to the portfolio regularly. Investors should not allow fluctuations in their portfolios to deter from staying in the game for the long haul to reap the fruit of their patience and long-term investment strategies.

Other factors that threaten wealth and pose a danger to investors are borrowing money to invest and speculating. The investment philosophy of The Family Office has always been and remains against borrowing and speculation. According to Al Omran, this is one reason the firm has been a successful investment manager for 17 years.

Market speculation only serves the companies that provide investors trading platforms and lend them money to encourage them to trade for the sole purpose of generating commissions. A mere 5% of speculators end up with above-market returns whilst a staggering 95% underperform the market. The best investment strategy is to delegate wealth to specialized firms who co-invest it with leading investment companies across diversified assets to preserve and grow it, enabling the investors to focus on their private business, career, or self-development.

The Family Office is not a marketing company seeking to gather assets, says Al Omran. Since its establishment in 2004, many other investment companies entered the market and raised more money than it did.  These companies no longer exist as they were marketing companies who lured investors into projects that may have been fake or entailing risks that dosuit the investors, because their goal was to collect investors’ money not preserve it. Therefore, it is important to clarify the distinction and highlight companies like The Family Office who endeavor to preserve client wealth and the reputation of the firm to maintain long-term client continuity through a sound investment strategy.

Other factors are the laws and well-applied governance that enable investment managers and investors to succeed. The firm establishes partnerships with the top investment houses worldwide in their specialty to offer clients best-in-class investment opportunities and ensure that their money is safe.

The Family Office endeavors to preserve and grow investors wealth. The company is regulated by six authorities worldwide and is the only company in the Middle East that has an independent firm in Switzerland. Investors can open an account in Switzerland via The Family Office or with The Family Office directly.

The wealth management sector faces many challenges, says Abdulmohsin, primarily technological development and changes in investor behavior. Investors demand instant, fully transparent information that is available anywhere, anytime. The firm has, therefore, endeavored to invest regularly in the latest technology to support clients and has invested $30 million so far. Al Omran states that companies that are yet to invest in technology could struggle to cope with or grow in the sector.

Watch the first interview with Abdulmohsin Al Omran, where he speaks to Argaam about wealth management

Disclaimer:

The Family Office International Investment Co. | P.O. Box 9072, Riyadh 13512 | CR 1010608698 | Tel: +966 11 250 7720.

A joint stock closed company owned by one person | Paid-up capital SR2 million | Licensed by the Capital Market Authority (no. 17-182-30) The Family Office International Investment Co. only offers products and services to ‘accredited investors’ as defined by the Capital Market Authority.