Key Takeaways
- • Cambridge Associates, founded in the US in 1973 by two Harvard College graduates, marks 50 years in business with more than 1,000 institutional and family clients worldwide, 11 offices and close to 1,500 employees, according to the firm's sponsored South China Morning Post article.
- • Judy Zhang, managing director and head of China client business, says the firm has seen a surge in demand from Asian families inquiring about its investment management services, driven by succession concerns and recent market volatility.
- • Zhang argues most Asian family offices are first- or second-generation, and that entrepreneurial skill does not automatically translate into effective portfolio management.
- • The firm's process starts with an enterprise review and an investment policy statement, followed by manager due diligence drawing on 300 senior investment professionals and 50 years of manager data.
- • Cambridge Associates emphasizes diversification across public and private markets, investment governance frameworks for multi-generational families, and sustainable and impact portfolios tied to philanthropy.
Summary
Cambridge Associates, an investment firm founded in the United States in 1973, is positioning its services for Asian family offices as they seek to institutionalise wealth management. The firm, which is independently owned and privately held by its employees and a select group of clients including the Rothschilds and the Hall family of Hallmark, began by advising university endowments and foundations, including Harvard University, before expanding to pensions, sovereign wealth funds and family offices globally. The company reports more than 1,000 institutional and family clients, 11 offices and close to 1,500 employees.
According to Judy Zhang, managing director and head of China client business, Asian family offices differ from Western counterparts, which typically have existed for multiple generations. Most Asian family offices are in their first or second generation, and legacy and succession planning are rising priorities. Zhang says recent market volatility has hit some families' portfolios and that the firm has seen a surge in inquiries from Asian families about its investment management services. She also argues that entrepreneurial success does not automatically carry over to portfolio management, and that referrals from peers can introduce investments that are not of institutional quality.
The firm's process begins with an enterprise review to establish each family's needs, risk tolerance and constraints, producing an investment policy statement covering strategic asset allocation, manager structure and risk-return parameters. Cambridge Associates then conducts due diligence, drawing on its 50 years of manager data and the expertise of 300 senior investment professionals. Zhang says the firm monitors portfolios and reviews its roster of global managers daily, conducting three to five manager meetings a day on average. The firm favours diversification across public and private markets and regions rather than concentration in a family's home market or operating sectors.
Zhang also highlights governance as a central issue as families move from first-generation control to multi-generational stakeholders, and says the firm works with family branches to build investment governance frameworks. She notes Asian families' interest in global innovation sectors including healthcare, information technology, energy transition and climate technologies, as well as sustainable and impact investing to fund philanthropy. Zhang has written a report on governance and policies surrounding intergenerational family wealth in Asia. The article is a sponsored piece, and it includes a regulatory disclaimer listing the firm's entities, including registrations with the US SEC, UK FCA and Hong Kong SFC.
According to Judy Zhang, managing director and head of China client business, Asian family offices differ from Western counterparts, which typically have existed for multiple generations. Most Asian family offices are in their first or second generation, and legacy and succession planning are rising priorities. Zhang says recent market volatility has hit some families' portfolios and that the firm has seen a surge in inquiries from Asian families about its investment management services. She also argues that entrepreneurial success does not automatically carry over to portfolio management, and that referrals from peers can introduce investments that are not of institutional quality.
The firm's process begins with an enterprise review to establish each family's needs, risk tolerance and constraints, producing an investment policy statement covering strategic asset allocation, manager structure and risk-return parameters. Cambridge Associates then conducts due diligence, drawing on its 50 years of manager data and the expertise of 300 senior investment professionals. Zhang says the firm monitors portfolios and reviews its roster of global managers daily, conducting three to five manager meetings a day on average. The firm favours diversification across public and private markets and regions rather than concentration in a family's home market or operating sectors.
Zhang also highlights governance as a central issue as families move from first-generation control to multi-generational stakeholders, and says the firm works with family branches to build investment governance frameworks. She notes Asian families' interest in global innovation sectors including healthcare, information technology, energy transition and climate technologies, as well as sustainable and impact investing to fund philanthropy. Zhang has written a report on governance and policies surrounding intergenerational family wealth in Asia. The article is a sponsored piece, and it includes a regulatory disclaimer listing the firm's entities, including registrations with the US SEC, UK FCA and Hong Kong SFC.
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