Long-term investing view necessary to work at a family office

The objective is to look after and grow the wealth for the next generation and beyond

- Lee Su Shyan

At Pacific Eagle Asset Management (Peam), one of the longest-established family offices in Singapore, it is doing well on a long-term basis that determines team members' remuneration.

This is as Peam, like many other family offices, takes a long-term view of investing, with the aim of preserving the family's wealth, and has structured its reward system to favour those who share its longterm mindset.

Peam was set up more than two decades ago, in 2002, to manage the wealth of the family of tycoon Sukanto Tanoto.

His daughter, Ms Imelda Tanoto, joined the single-family office in 2013.

Ms Tanoto, who is Peam's managing director, emphasises that people who join a family office should have a long-term view of investing as a family office is meant to look after the wealth for the next generation and beyond.

"We care a lot about attracting talent who share similar values and a long-term commitment, and we retain them by structuring the right remuneration package for them," she adds.

Remuneration is also based on long-term indicators. "We also look at the portfolio's performance over the last three years, the last five years, because we don't want to use a one-year result as it may force them to behave in a more shortterm manner," she says.

When Ms Tanoto hires, she does not necessarily opt for someone with a fund management background. This is because managers of a fund, with its quarterly metrics and the focus on quarterly results to account to its unit holders, may sometimes hold an investing mindset that is too short term.

INVESTING FUNCTION

The investment function is an important part of the family office.