Supply chain issues are creating significant disruption and adversely impacting businesses and portfolio companies used by wealth managers and family offices, according to Ocorian.

Its analysis of alternative asset managers, family offices, wealth managers, and professional services providers found that 76 per cent felt supply chain disruptions had adversely affected their businesses or portfolio companies.

Of the respondents experiencing problems, 64 per cent said they would change their senior leadership team to improve their ability to deal with these supply chain issues.

Furthermore, over half (57 per cent) stated they would work with senior management of affected companies to address these problems.

However, a large proportion were taking more drastic measures, with 46 per cent planning to totally divest from portfolio companies facing supply chain disruptions, and 38 per cent expecting to reduce their stake in affected companies.

A third (33 per cent) of respondents were attempting to offset disruption by looking for ways to reduce fees paid to suppliers that are experiencing supply chain issues.

Despite these challenges, Ocorian found that companies remained positive about market conditions.

More than three quarters (76 per cent) said they had a positive outlook on market conditions over the next 18 months, while 23 per cent felt neutral and only 1 per cent had a negative outlook.

“Our research shows that recent global events have highlighted vulnerabilities in global supply chains which have impacted businesses and portfolio companies, with disruptions becoming so severe that many have decided to walk away and totally divest from affected portfolio companies,” stated Ocorian global head of onboarding and solutions, Charlotte Cruickshank.

“Reassuringly, working closely with or installing new skills into the leadership team is the preferred method to overcome these significant challenges.

“Overall, the senior executives, asset managers, wealth managers, family offices, capital markets professionals and professional service providers that we surveyed hold a positive outlook on market conditions for the next 18 months which is encouraging to see.”

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