• Ripple Effect of the Graying of America
• Top Technology Trends — 2006
• What Ever Happened to the"$41 Trillion Transfer of Wealth"?

• Assessing Current Credit Markets
• A Guide to Bottom-up Investing
• Hedge Funds — Superstars or “Average Joes”?
• A New Breed: Real Estate Liquidity Providers

• Risk Management Rewarded

• Philanthropy: Rounding Up Global Best Practice
• Strategies and Opportunities Related to the Transfer of Wealth
• Bahamian Foundations Permitted

• Aircraft Taxation Issues Examined
• Destination Clubs: A New Twist on Timeshare
• Evaluating Your Personal Security

• Keeping Avian Flu in Perspective

• Register for the FOX CEO Forum — April 26 - 27, 2006
• Member Shared Documents & Templates Recently Added
• Webinar Replays Newly Available on FOX Website
• FOX Member Survey Results Available

Ripple Effect of The Graying of America
As the boomer generation ages, the US faces major challenges relating to longer life spans, falling fertility rates and intergenerational transfers of wealth — all with incidental consequences for the economy, fiscal policy and financial markets. FOXConnects rounds up some interesting perspectives:

• The ramifications of demographic change are “unprecedented in history,” according to expert testimony by Paul Hodge, chair of the Global Generations Policy Institute, to the 2005 White House Conference on Aging.
  Read “Living Younger Longer: Baby Boomer Challenges”
  
  
• A paper by Loomis, Sayles & Co. predicts continued rises in medical expenditure as a share of GDP. It warns to expect major tax increases in the years ahead.
  Read “Healthy, But Not Wealthy”
  
  
• A research note by Hammond Associates explores the financial implications of rising dependency ratios (i.e. fewer working age people per retiree). It predicts downside risk for equities and standard fixed income investments.
  Read “The Impact of an Aging Population”

return to top

Top Technology Trends — 2006
Technology affects all our personal and working lives. The American Institute of Certified Public Accountants produces an annual Top Ten Technologies survey, designed to bring to the attention of its members “important and emerging technologies that will contribute to the profession.” For the fourth consecutive year, the most important technology has been found to be information security.

• Read “Top 10 Technologies 2006”

return to top

What Ever Happened to the "$41 Trillion Transfer of Wealth"?
A paper by the Center on Wealth & Philanthropy examines the issues surrounding the projected $41 trillion wealth transfer by the year 2052.

• Read “Why the $41 Trillion Wealth Transfer Estimate is Still Valid: A Review of Challenges and Questions”

return to top

Assessing Current Credit Markets
Are credit spreads too tight? Where are the opportunities in global high yield and distressed? In this white paper on credit markets, Strategic Value Partners analyst Jean-Louis Lelogeais takes a close look at historic and current market and economic factors to narrow in on the answers.

• Read “White Paper on Credit Markets”

return to top

A Guide to Bottom-up Investing
An extract from a book by Dalton, Greiner, Hartman, Maher & Co. discusses the bottom-up (i.e. based on analysis of individual companies) school of investing, with the emphasis on small-cap equities. It includes a discussion of the tools of active management, with a detailed guide to conducting management interviews. The authors argue that strong fundamental analysis can lead to out-performance in small-cap investing.

• Read “A Bottom-Up Approach to Small Capitalization Active Management”

return to top

Hedge Funds — Superstars or “Average Joes”?
David Swensen, a well-regarded manager of the Yale University Endowment has cautioned investors to steer clear of hedge funds — and particularly to avoid funds of hedge funds. Is this indicative of an excessive backlash against the sector, or prophetic warning? A white paper by Greycourt, a firm with a record of skepticism in relation to hedge funds, seeks to sort the wheat from the chaff across the sector. For the well-advised investor, its conclusion is reassuring: “stop worrying and enjoy the New Year!”.

• Read “Hedge Funds Get Swensened"

A contrary perspective is put forward in a working paper published by the Alternative Investment Research Centre. Evaluating the net-of-fee performance of 1,917 individual hedge funds, the authors find no more than 17.7% of the sample have beaten their benchmark. They also observe a “substantial deterioration” in the performance of both hedge funds overall, and of successful hedge funds.

• Read “Superstars or Average Joes?"
  Select a download link at the bottom of the page

return to top

A New Breed: Real Estate Liquidity Providers
A paper by Madison International Realty president Ronald Dickerman identifies a new breed of real estate investor who can potentially help indirect property investors (those with partial stakes in commercial real estate investment funds, partnerships and joint ventures) find a quick route to liquidity.

• Read “How to Find Liquidity in Private Real Estate Funds ”

return to top

Private Trust Company Factors to Consider
Does a private trust company represent a better choice than individual trustees for a wealthy family? A paper by Kozusko Harris Vetter Wareh explores the issue in some detail.

• Read “Trust Companies for Family Wealth: Build My Own?”

A recent teleconference on Private Trust Companies was held among the FOX CEO listserv discussion group for members who have a Private Trust Company and those who are exploring the structure. The open, peer-to-peer exchange featured a presentation by Chicago Attorney John P.C. Duncan.

• View the Handout Material: "The Private Trust Company - A Charter Created for Family Wealth Management"

return to top

Domestic Asset Protection Trusts Examined
In today's world, domestic asset protection trusts can be a useful planning tool. However, under certain circumstances can be subject to intense scrutiny. Holland+Knight defines and outlines the case for domestic asset protection trusts.

• Read “The Use and Abuse of Domestic Asset Protection Trusts”

return to top

Webinar Series Focuses on Trusts in Selected Countries
A series of free webinars on using Trusts in Family Wealth Planning will be held by Baker & McKenzie’s interactive knowledge and training division LawInContext. Six programs will be held February through June, each focusing on how trusts can be used by a family resident in selected countries including Russia, Israel, Malaysia, India, Portugal and Columbia. The one-hour webinars will be conducted in English, and each will include a case study. Participation in each webinar is free but space is limited.

• LawInContext Webinar Information and Registration

return to top

Risk Management Rewarded
For investors, risk is a fact of life. Research by Ernst & Young has found that investors seek out and reward good risk management when making investments. In a survey of 130 institutional investors in 16 countries, 82% were found to be willing to pay more for companies that manage risk well. Such a perception is driven by factors including an assessment of Board level ownership, and understanding and communication of risk issues.

• Read “Investors on Risk. The Need for Transparency”

return to top

Philanthropy: Rounding Up Global Best Practice
The Winter issue of Global Giving Matters provides an overview of noteworthy giving activities worldwide. It includes a feature describing an innovative model of philanthropy emerging in Brazil, where two individuals are using their wealth to stimulate strategic community partnerships in deprived urban areas of Rio de Janeiro and Sao Paulo.

• Read Global Giving Matters

return to top

Strategies and Opportunities Related to the Transfer of Wealth
A paper by Betsy Brill, published in Estate Planning, addresses opportunities for philanthropic giving arising from intergenerational wealth transfers.

• Read “Preparing for the Intergenerational Transfer of Wealth: Opportunities and Strategies for Advisors”

Bahamian Foundations Permitted
The Bahamas has passed legislation to allow the establishment of foundations in the Caribbean jurisdiction. FOXConnects rounds up some technical resources:

• Read a detailed, yet practical analysis of the legislation by the Bahamas Financial Services Board (BFSB)
  
  
• View a foundations information guide, also published by the BFSB, along with links to various articles/sources of interest

return to top

Lifestyle Management

Aircraft Taxation Issues Examined
Following up from its general article discussing the impact of the American Jobs Creation Act on aircraft (FOXConnects August 2005), Keith Swirsky & Christopher Younger of Galland, Kharasch, Greenberg, Fellman & Swirsky focus on a specific planning area: how to determine what travel on corporate aircraft by an employee constitutes “commuting,” and how an employer’s costs relating to such travel are treated in law.

• Read “Corporate Aircraft Deductions — Focus on Commuting Expenses”

A related article discusses maximizing corporate aircraft tax deductions under the American Jobs Creation Act.

• Read “Maximizing Corporate Aircraft Tax Deductions Under The Jobs Creation Act”

return to top

Destination Clubs: A New Twist on Timeshare
Would you like to call a portfolio of multi-million dollar residences home? This is the premise that underscores the current growing popularity in destination clubs, as described in an article by Scott Anderson, extracted from Hotel Business Review.

• Read “Destination Clubs: An Analysis of an Emerging Market”

return to top

Evaluating Your Personal Security
Just how secure are you and your family? In uncertain times, 10 questions from Risk Control Strategies prompt thoughts on possible areas of vulnerability.

• Read “The Affluent Family’s Self-Evaluation for Personal Security”

return to top

Other Items of Interest

Keeping Avian Flu in Perspective
While its not grabbing front page headlines as it has lately, concerns surrounding the avian flu have not gone away. Indeed, the question “Does anybody have a plan for the avian flu, should it reach pandemic proportions?” was recently raised by a FOX member in a listserv discussion. These two items help put the possibility of a pandemic in perspective.

• PinnacleCare outlines reasons for concern and shares precaution measures people can take when traveling:
  Avian Flu: Don’t Let Your Guard Down
  
  
• An article appearing in The Weekly Standard, brought to our attention by a FOX member, provides an informative in-depth analysis:
  Fuss and Feathers – Pandemic Panic Over the Avian Flu

return to top

Register for the FOX CEO Forum — April 26 - 27, 2006
The CEO Forum brings together the industry's most experienced family office CEOs to share new insights and practical solutions to the unique challenges facing family offices today. Don't miss this opportunity to gain knowledge and practical tools that you can immediately put to use in your office. Attending this exclusive gathering will give you the opportunity to:

• Benefit from initial insights gathered from the new FOX benchmarking initiative
• Private trust company advantages and alternatives
• Economic trends anticipated for the year
• Strategies for conflict resolution in a family setting

return to top

Member Shared Documents & Templates Recently Added
FOX members continue to contribute to new documents to the Shared Document Archive.

Newly Added Documents

• Family Financial Mission Statement Sample 2
• Family Mission Statement Sample 3
• Family Mission Statement Sample 4
• European Family Mission Statement Sample 5

Save the time it would take to create document templates from scratch. Be sure to check the Document Archive section within the FOX private website and see how useful this benefit of membership can be for you. Over 40 documents are currently available.

return to top

Webinar Replays Newly Available on FOX Website

10/05/05 — Post Modern Portfolio Theory: What is the Next Step?
Featured Speaker: Pete Swisher, Unified Trust

12/14/05 — Checks and Balances: Making HR Compliance Work For You
Featured Speaker: Jack McCalmon, Titus, Hillis, Reynolds, Dickman and McCalmon

01/18/06 — Collateralized Debt Obligation (CDO): Making Sense of the "Black Box"
Featured Speakers: Brian McManus and Eric Wittenberg, Wachovia Securities

01/25/06 — To Be or Not To Be an RIA?: New SEC Developments and Consequences for the Family Office
Featured Speaker: Martin Lybecker, Wilmer Cutler Pickering Hale and Dorr LLP

02/01/06 — 2006 Estate Planning Update: Hot Topics and Recent Developments
Featured Speaker: Edward "Ed" Koren, Holland & Knight, LLP

For a full listing of FOX Online Replays now available, visit the Resource Center section of the FOX website. (You will be required to log on to the FOX private website.) CE credit is provided for participation in live webinar/teleconference presentations.

return to top

FOX Member Survey Results Available
FOX has been conducting regular member surveys on a range of topics. The December 2005 Survey addressed Family Office Compensation and Benefits, and Annual Family Office Performance. The results of this and other past surveys are available to family office members in the FOX private website.

• View the FOX Member Survey Results

return to top