In a competitive market and uncertain times, the Family Dynamics practice of Wells Fargo’s Family Wealth unit is more than just an add-on service.

In a competitive market and uncertain times, the Family Dynamics practice of Wells Fargo’s Family Wealth unit is more than just an add-on service, according to Pat Armstong, managing partner and Family Dynamics head.

“I think we’re a critical marketing differentiator that enhances the appeal of Family Wealth,” Armstong said. “The value that we bring is that we are fully integrated into the Family Wealth platform.”

Family Dynamics is a four-person team based in Boston and San Francisco that specializes in non-investment areas of wealth management for wealthy families such as governance, next generation education, legacy planning, leadership transitions and philanthropy.

Family Wealth is Well Fargo’s re-branded family office offering combining Wachovia’s Calibre unit that works with families who have a net worth of at least $100 million.

The unit sits inside a wealth management division of the bank that has seen its fortunes improve considerably in recent months. In the first three months of 2010, net income at the wealth segment of Wells Fargo rose by 60 per cent year-on-year to $282 million, according to latest data published in April. That profit increase was achieved on the back of a 16 per cent rise in revenues to $2.9 billion. Average core assets rose by 18 per cent year-on-year.

More appealing 

In the wake of the financial crisis and in the midst of a rocky recovery, those super wealthy families find Family Dynamics offerings more appealing than ever, according to Armstrong.

“They’re interested in how to find wise counsel in the wake of the financial uproar of the past few years. Clients are being very thoughtful about deciding who to go to as a trusted advisor,” said Armstrong, who was named head of Family Dynamics in January after 20 years with Wells Fargo, most recently as human resources director for Wells Fargo Wealth Management.

Educating children and “passing good stewardship on to the next generation” are “top of mind” concerns when making those decisions, Armstrong said.

“There is a great deal of interest in preparing heirs to understand the magnitude of their wealth and how and when to communicate with children,” she continued. “It’s a peace of mind topic for clients.”

Pricing Varies

The fee for Family Dynamics' services “depends on the size and nature” of the families’ relationship with Family Wealth, Armstrong said.

If a family has a “large number of assets services might be integrated,” she said. But a “comprehensive multi-generational planning engagement” for a family may be done on a fee-for-service basis.

Family Dynamics is continuing to “build out offerings in response to what clients are interested in,” Armstrong said.

One example she cited was more guidance for grandparents. There’s an increasing demand to involve grandparents more fully in educating their grandchildren and communicating the family’s legacy, according to Armstrong.

Family Dynamics will also be involved in arranging speakers, topics and educational workshops for Family Wealth’s annual client forum in the fall.

The practice’s team members currently work with Family Wealth clients in the unit’s offices in San Francisco, Los Angeles, Minneapolis, Palm Beach, Winston-Salem, Philadelphia and Boston.

Going forward, Armstrong said she expects that list to include New York, Atlanta, Houston and Fort Worth in Texas.