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June Headlines
Business Owner Issues
Family Continuity & Governance
Family Education
Family Office Practice Management
Industry Trends and Issues
Integrated Planning
International Trends
Investment Planning
Lifestyle Management
Strategic Philanthropy
Technology Trends
Business Owner Issues
Selling the Family Business
- An article from Private Wealth Management discusses how to circumnavigate a variety of pitfalls that might occur when selling the family business, along with a description of the different phases of a deal. The first step in selling your business? Seek a good advisor.
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Family Business in Cyprus and Europe
- A report by PricewaterhouseCoopers presents the results of a survey, conducted in Cyprus, of family businesses as well as summary results of a European-wide survey. The report aims to build awareness of issues faced by family businesses today and provide owners with useful peer group information in order to benchmark their own practices. Of general interest to family businesses in all countries.
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Family Continuity & Governance
Three Contributions on Family Continuity
When it comes to estate planning, wealth can be a great unifier or cause irreparable divisions. A paper by Northern Trust gives practical guidance on creating a family legacy that lasts. Includes thoughts on improving family communication.
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A paper published in Wealth Manager magazine examines how to slow the journey to financial entropy over successive generations by circumventing, where possible, the disruptive effects of taxes, war, inflation, devaluation and political collapse.
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A family business should not pin all its hopes on one family successor, according to an article in Family Business. Diversity, the article’s author says, is the key to sound financial planning.
Family Education
Financial Plan Eases Pain of Loss
Contemplating death or divorce is not something that most individuals find easy to contemplate. However, the best strategy for dealing with loss is to have a financial plan in place beforehand. Northern Trust has produced a useful guide to navigating finances if you unexpectedly find yourself alone.
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Family Office Practice Management
Keeping Up With Family Office Issues
A new family office newsletter from Withers addresses a range of relevant topics, with an update on private trust companies, private equity investments in the luxury sector and a comparison of the U.S. and U.K. tax systems.
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Industry Trends and Issues
The Growth of Fund Management JVs in China
Since the first Sino-foreign joint ventures were approved in 2002, fund management has continued to be one of the most accessible sectors for foreign firms in China. A joint report by KPMG and Reuters considers the operational challenges, including setting the right terms, improving the efficiency of distribution channels and providing better education for investors. It also provides an analysis of size and performance metrics for different segments of the fund management industry.
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Integrated Planning
Introduction to Life-Cycle Investing
Drawing on 1950s models, the financial planning community tends to use mainly precautionary savings and diversification strategies to manage personal wealth. An article published in the Journal of Financial Planning describes the emergence of a new life-cycle investing approach: a multi-period model that uses hedging and insuring as well as precautionary savings and diversification as core strategies.
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International Trends
Learning from Wealth Transfer in Asian Families
A special report, produced by ABN AMRO Private Banking and INSEAD, examines the emotional aspects of wealth transfer and inheritance in Asian families. This study takes a detailed look at the views of more than 30 high net worth families from across Asia. A rare insight into inheritance and succession issues from a region renowned for the entrepreneurial wealth being generated by family businesses.
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Real Estate in Russia
A paper by Knowledge@Wharton examines the Russian real estate market, where demand is rapidly outstripping supply and pricing is soaring. The paper warns foreign investors to beware, particularly in light of reports of unscrupulous practices by some local property developers.
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Investment Planning
Report Adds Extra Dimension to Modern Portfolio Theory
A paper by Aquillian Investments seeks to extend the risk/return trade-off of modern portfolio theory by introducing a third dimension: impact, or the benefits to be gained from investing in the social good. Based on the notion that people are not motivated by financial considerations alone, the paper’s author argues that a “new efficient frontier” provides a useful mechanism for evaluating portfolios that are truly optimal for real-life investors.
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Research on Structured Products
Research by Wachovia examines supply and demand factors in relation to collateralized loan obligations. With new issues in the pipeline, it appears that CLO note investors are returning to the market.
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Focus on Hedge Funds
A survey of best practices in the hedge fund industry by Horizon Cash Management offers a detailed look at hedge fund investment processes, valuation policies, risk management, marketing, regulation and compliance. It finds general improvement in adoption of best practices, albeit with a number of areas with room for improvement.
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A briefing by the Family Investment Office examines liquidity risk in relation to funds of hedge funds. The authors warn that recent changes in the industry have led to misalignments in liquidity risk that could have severe consequences for investors if not properly managed.
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Shedding Light on Private Equity
A special report, produced in cooperation with students from the Wharton Private Equity Club, highlights the ways in which private equity firms are working to source deals, set themselves apart in an auction process and ensure performance once the deal is done.
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Lifestyle Management
Thoughts on Jet Safety
Private jet travel is extremely safe, but it can pay to check certain details before you fly. Helium Report has produced a checklist of facts that may be worth verifying before taking a charter flight.
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Strategic Philanthropy
Global Giving Matters
The spring issue of Global Giving Matters takes a look at developments in the global philanthropic landscape. Includes a look at the efforts of five young philanthropists who are addressing issues of concern around the world, a global giving roundup and some useful resources and links.
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Technology Trends
Escaping From Technology
When you go on vacation, do your PDA and laptop go, too? While technology has made it increasingly possible for people to stay connected, it also has raised issues relating to work/life balance. An article at Inc.com examines the issues, with a particular focus on the demands placed on entrepreneurs.
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