There's a new term for advisors to wealthy clients: Wealthasaurus. Our US correspondent joined the UHNW Institute in Manhattan last week to absorb the insights and conversations of an organization changing the way people think about advice to UHNW families.

The family wealth industry now has its own version of Investopedia.

“Wealthesaurus,” the first glossary of standardized definitions of terms used by advisors working with ultra-high net worth clients was unveiled at The UHNW Institute’s annual Symposium in New York last week. 

Similar to curated glossaries like Investopedia, Wealthesaurus defines common and specialized family wealth advising industry terms, supported by an explanation, cross-references to related terms and citations when available.

The Wealthesaurus “may be one of the most important things the Institute does,” said Jim Grubman, an Institute board member and principal at Family Wealth Consulting. Grubman introduced the glossary to attendees from a range of family offices, private banks, trust companies, wealth management firms and vendors from across the country.

Work in progress
The glossary is still a work in progress, Grubman stressed. He urged advisors to offer feedback to the Institute. Most of the 75 terms used by the industry were “solid,” he said. Other terms however, such as “client curated services” and “holistic services,” were what Grubman described as “kind of b.s.,” “highly subjective” and “without recognized business standards.”

The long-awaited glossary was met with praise by industry professionals. “It’s innovative and groundbreaking,” said Linda Bourn, senior vice president for Alliant Private Client. “It should be a valuable education tool for both families and advisors. And it has a nice catchy name.” 

The Wealthesaurus is now available in the UHNW Institute’s member portal and may become open to the general public.

Anchors
The Institute’s trademark Ten Domains of Family Wealth, which covers key relationship issues between advisors and clients ranging from investments to transition planning, and its Integrated Family Wealth Management initiative, anchored the conference, The Future of Family Wealth Advising, Positioning Your Firm for Success.

Grubman conducted a two-hour training session on how to apply the Ten Domains to daily practice. Wally Head, co-founder and director at the Institute and principal of Personal Fiduciary Advisors, explained how the Institute’s “Multiphasic Service Model” (MSM) addresses the needs of ultra-high net worth families across the Ten Domains.

Different types of advisors and business models in the industry now operate “in isolation,” Head asserted, and families and firms aren’t aware of how services are being delivered.

(Main picture: Wally Head, left, and Jim Grubman, right.)

Compare and contrast
To help families find an effective integrated wealth management solution, the Institute announced that it would be conducting a survey of advisory firms to see how closely their offerings and business models align with multiphasic service model requirements.

The survey results are expected to allow firms in the industry to compare their services and to educate families about the offerings available to them.

“It will help families better understand the landscape and make better choices,” Head said. But, he added, the survey results and the Institute’s MSM service model are “not designed to help families find the right firm, but to get them into the right category.”