B.A. van Doorn opens a family office. The independent wealth manager from Amsterdam has grown quietly over the past twenty years to manage €800 million in assets and serve over 300 clients, but now wants to broaden its services.
“Our origins date back to 1831. Since 1997, we have been providing clients with personal and clear financial advice.” The website of B.A. van Doorn exudes history, but the name quietly navigates through the sector. Director and wealth manager Albert Maingay confirms that the firm has always aimed to keep a low profile. However, the growth of the team, the client base, and continued professionalization mean that the company is now looking outward.
Maingay himself joined the wealth manager in 2004, after years at ABN Amro and then Kempen Capital Management, when he started feeling restless. “The bonus culture, being judged on how well you could meet the bank's targets, sometimes conflicted with the clients' best interests. I wanted to be able to tell the honest story to the family members, friends, and acquaintances I had brought on board.”
Through a friend of his parents, Maingay came into contact with the Blaricum-based owner of B.A. van Doorn, a small loss-making office with an asset management license. At the time, the firm had barely fifteen clients and managed assets of €15 to €20 million. Maingay: “Fine, you can start,” said Mr. van Doorn to me. I saw my chance to completely rebuild it.”
And so it happened. Maingay (pictured) redefined the investment policy, on the condition that he would receive shares in the firm if the wealth management business became successful due to his input. Furthermore, he did not want to offer proprietary products, earn from transactions, or receive kickbacks. "The owner – traditionally a broker – had to get used to that idea, but I wanted to build long-term trust, agree on fees with clients upfront, and then come up with the most cost-effective solutions for them."
To talk the quills off a porcupine
The wealth manager filled the portfolios with index trackers, which were still relatively unknown to the general public at the time. “Because I had no stake in the way portfolios were constructed, I quickly realized that index trackers were a better alternative than expensive investment funds and the proprietary funds of banks,” says Maingay. “In 2005, we were one of the first to include index funds as building blocks in our portfolios. In terms of investment results, we quickly gained momentum, though I had to speak like Brugman to win trust for index trackers. ‘What is that?’ clients asked.”
Currently, B.A. van Doorn primarily works with a core-satellite strategy, where the core consists of a tracker on the MSCI World, and the usually four or five satellites are from sectors, themes, or regions. Thanks in part to a professionalization of that strategy and the firm, particularly with the arrival of former ABN executive Marc Vernooij in 2012, the team at B.A. van Doorn has grown to fifteen people, and the managed assets have increased to €800 million. In 2014, Sam van Doorn stepped down from the board.
The growth occurred entirely autonomously, says Maingay. “Our client base has steadily improved, though external parties still ask: who is B.A. van Doorn? We realize that we need to be more visible, especially in light of the developments among our clients.”
He is referring to the fiscal and legal issues that clients have increasingly brought to them in recent years. “How do you pass on wealth to the next generation? How do you handle immigration? Until now, we didn’t want to get involved in those matters. We are not lawyers, not accountants, and we wanted to focus purely on wealth management. But we’ve noticed that clients do expect us to actively think along with them.”
Family Office
The office decided to expand its knowledge base by bringing in a tax specialist and, ultimately, to set up family office services earlier this year. Maingay: "Clients prefer a one-stop shop rather than separate advisors who don’t communicate with each other or might have a conflict of interest. As a family officer, you're at the table with wealthy families and entrepreneurs. From there, you take charge and set the course. I think that’s where the future lies, because you see banks consolidating and focusing on their own products, while families are looking for control, peace of mind, and an overview. The best way to support a family is by offering an integrated package and involving other tax specialists, lawyers, and banks."
How does Maingay view the position of B.A. van Doorn in the current wave of consolidation? "We want to remain independent, which is no coincidence that it’s in our logo. We believe that’s the best way to support a relationship. And it’s possible, because we are ambitious. With the opening of our family office, we are also appealing to families with more wealth. Now that we can offer services in taxation, governance, real estate, and private equity, we are sitting at the table in a completely different way, and suddenly have a broader reach than where we started. The scaling up continues, but ultimately, independence is the factor that prevails."
Tekst: Lenneke Arts
Zie ook: www.InvestmentOfficer.nl
