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December Headlines
Family Continuity and Governance
Family Education
Industry Trends
International Trends
Investment Planning
Real Estate
Strategic Philanthropy
Taxation
Technology Trends
Family Continuity and Governance
A Guide to Family Governance Planning
Family governance can be a planning aid to help perpetuate family wealth and also deal with contentious issues within the family. Wells Fargo offers a guide to help create a family governance plan, looking at the key elements of a plan as well as offering a comprehensive model and process for constructing it.
Coping Proactively with Family Realities
Complex extended families, generational differences, challenging economics and leadership issues are some of the challenges addressed in this article from RayLign Advisory. The author cites the need for family leadership to be proactive in dealing with the seven key realities he describes.
A Fortune with Strings Attached
An inherited fortune may come with strings attached as wealthy families make a college education or job experience a condition of inheritance. About 60 percent of families with more than $10 million in assets place stipulations like these, according to a report on attaining and retaining wealth from Barclays Wealth. The report also discusses the importance of family members agreeing on how wealth will be passed on.
Family Education
Domestic Staff: From Hiring to Firing
Hiring domestic staff can mean dealing with a shortage of qualified candidates, increased regulations, security and privacy risks, and exposure to litigation and liability. In this white paper, HUB offers simple, practical steps for families who need to hire, retain and terminate staff.
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Succession Planning Vital to Family Businesses
Family businesses are most at risk for financial troubles based on a lack of formal succession planning and preparation, and on family business owners’ personal financial issues, according to MassMutual Financial Group’s 2007 American Family Business Survey. The survey also found that family businesses are growing in jobs and revenues, and often with women leading that growth.
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Opening the Boardroom
Two major changes have occurred in public company boards, both without regulatory impetus, according to SpencerStuart’s 2007 Board Index. These are a more strategic, hands-on approach to identifying and screening new director candidates as well as revised director compensation packages.
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Industry Trends
Another Look at Private Wealth
International Financial Services London offers its take on the international market for private wealth in a report entitled International Private Wealth Management 2007. London-based IFSL analyzes the size, structure and key developments for the market of individuals with at least $1 million in investable assets.
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International Trends
Asia at Highest Risk for Money Laundering
Asia has experienced the greatest increase in money laundering risk, according to a survey by Fortent of senior compliance officers at financial institutions. Respondents expect regulatory interests to focus next on trade finance, particularly in Asia and the Middle East. They also identified private banking and electronic cash systems as areas to watch for increased crime.
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Rapid Growth for Emerging Global Markets
Investments in emerging global markets are expected to grow quickly, and exchange traded funds may provide one of the best ways to invest in these markets. That’s according to investment professionals speaking at a conference organized by Lyxor Asset Management. One prediction is that emerging markets will account for one-third of world markets by 2017.
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China Gaining as Major Player in Global Wealth
Look for China’s wealth market to grow faster over the next five years than that in any other country, according to a study by the Boston Consulting Group. The report predicts an annual growth rate of 17.4 percent for China during that period, far above the anticipated 5.6 percent annual rate expected for global wealth.
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China’s Rapidly Increasing Cadre of Billionaires
The United States has the world’s most billionaires with 415, but China is second and closing the gap fast with 100, up from just 15 a year ago, according to an article in the International Herald Tribune. The article looks at the new billionaires’ sources of wealth and considers where they may decide to use their money and influence.
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Investment Planning
Capturing the Opportunity in Hedge Funds
In the increasingly competitive hedge fund market, managers of larger funds are targeting institutional money, while smaller firms are competing fiercely for wealthy investors, according to a report by Rothstein Kass. Drawing on responses from senior partners at hedge fund organizations, the report looks at the changing strategies and market forces that affect their business operations.
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A Move from Market-Driven Investments
Wealthy investors are forsaking market-driven equities and bonds for such alternative investments as hedge funds and private equity that promise greater absolute returns. That’s according to a report called Barclays Wealth Insights: Risk, Return and Reward. The global report examines how wealthy individuals generate, maintain and pass on their wealth.
- Read the article
- Read the complete report
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Exchange Funds as a Diversification Strategy
A long-term investor seeking immediate, low-cost diversification may want to seriously consider exchange funds as a strategy, according to a paper from Atlantic Trust Private Wealth Management. The paper considers the risks and benefits of exchange funds and recommends paying careful attention to the fund’s issuer and structure.
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The Place for Absolute Return Funds in Asset Allocation
Absolute return funds deserve a place in anyone’s investment portfolio, according to a research paper from Liberty Gateway Investment Management Co. Rather than trying to fit these and other alternative investments into a traditional portfolio, Liberty recommends looking at traditional and alternative investments simultaneously to create the best possible portfolio at a given level of risk.
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Evaluating the Value of ADR-Only Accounts
ADRs, or American depository receipts, have given U.S. investors access to the common stocks of multinationals, but is an ADR-only account the best way to invest internationally? Fortigent examines that question in this white paper, concluding that high net worth investors also should consider limited partnerships and mutual funds with competitive fees.
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Commodity Investment with the Inventory Code
Investors can win bigger profits in commodity futures trading by keeping a close eye on inventory, according to a research paper available though Knowledge@Wharton. The research shows how to gauge inventory levels by looking at the relationship between prices of commodities on the futures market and in the cash market, where they are sold for immediate delivery.
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Real Estate
An Investment Strategy for 2008
“Stay the course” is the main approach suggested for property investment in the new year by LaSalle Investment Management. In its 2008 Investment Strategy Annual, LaSalle looks specifically at international real estate as a growing mainstream strategy and at possible outcomes of the sharp tightening in the credit markets.
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Strategic Philanthropy
Green Philanthropy
Environmental issues are gaining popularity as causes for charitable donation, but what should individuals know before they give? An extensive report from New Philanthropy Capital examines specific environmental problems and challenges in detail, suggests charitable approaches and offers a guide for donors and funders.
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Community Investing to Help the Disadvantaged
Community investing makes financing available for disadvantaged people in poorly served areas, offers capital for small businesses and helps local organizations provide community services. In this article, Atlantic Trust Wealth Management describes vehicles for community investing, defines the risks and offers a few specific fund recommendations.
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From Checkbook Charity to Meaningful Change
Shifting to strategic philanthropy often comes out of personal experience and the desire to make a difference. But how do individuals go about setting up and running a change-targeted foundation? Springbanc Philanthropy offers advice for making the transition, gives suggestions for strategy and provides a tax filing calendar for foundations.
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Taxation
Stealth Aircraft Tax Arrives Quietly for 2008
New tax regulations from the Internal Revenue Service should have companies reviewing their business aircraft ownership structure and operations, according to a report from the law firm Wiley Rein. Depending on how this structure is set up, companies may find themselves subject to federal excise taxes on air transportation beginning January 1.
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Technology Trends
Trust No One on the Internet
Online criminals are working through legitimate sites to place spyware or other malicious programs on the computers of ordinary users, according to Trends in Badware 2007, a report by StopBadware. Criminals can access users’ private information through links and software placed on these sites. The report outlines current practices, lists compromised sites and offers security suggestions.
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When Private Information Walks Out the Door
Flash drives and laptops may pose a threat to company security as employees take confidential information outside the office, according to a survey from Tower Software. The U.K.-based company found that 55 percent of surveyed employees store work-related e-mails, files and documents in locations other than a secure, shared computer network.
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