Fund managers to the rich who return less than a savings account

THEY are meant to be bastions of investing expertise for the ultra-rich.

But family offices made their clients next to nothing last year, while ploughing cash into resolving squabbles.

The organisations – which manage wealth for aristocrats, billionaire businessmen and celebrities – generated returns on investment of 0.3pc in 2015.

That means they would have only earned £3,000 for every £1m invested.

Offices spent an average £141,000 on counselling and relationship management for warring family members, according to the report by Camden Wealth Research and Swiss bank UBS. Another £108,000 went on managing high-value assets such as art, aircraft and yachts.

Top chief executives in the industry command salaries of more than £600,000 a year, with a bonus on top. But their investments underperformed the 6.2pc average for regular funds, which are open to anyone and far less expensive.

And despite rock-bottom interest rates, offices did worse than the average UK savings account.

It paid 0.83pc in 2015, according to consumer group Savings Champion.

If family office clients had entrusted their cash to star fund manager Neil Woodford instead, they would have earned 16.2pc.