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Industry Trends and Issues
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Industry Trends and IssuesThe Health of Global Financial MarketsIn the latest issue of its Global Financial Stability Report, the IMF offers an upbeat assessment on prospects for stability in international financial systems. It points to factors including strong corporate earnings and a continued increase in disposable personal incomes, which have led to substantial financial cushions in practically all major markets.
Finding Value: Investment Trends in Private EquityA special report produced by Wharton School, in cooperation with students from the Wharton Private Equity Club, offers its views on the investment trends that are shaping the venture capital investment environment. Areas of opportunity include the relative merits of China and India, alternative energy, and "distressed for control" investing. It also includes a roundtable discussion with four prominent limited partners.
Investment PlanningHedge Funds in an Investment PortfolioA white paper written for FOX by Azimuth Trust Management scrutinizes the performance of fund of hedge funds. It finds that FoFs out-performed traditional asset classes during the periods 1994-2005, 1997-2005, and 2000-2005, while noting that in extreme bull markets, traditional asset classes can perform better than FoFs. Written from a US perspective, but with generic lessons for the private investor.
Focus on Emerging MarketsThe market capitalisation of emerging countries has more than doubled over the past decade. A white paper by Parametric examines the rewards and risk of emerging market equity investment, along with thoughts on capturing systematic returns from these regions through a disciplined, long-term strategy.
Protecting The Value Of Real-Estate Rich PortfoliosA special report by Citigroup Private Bank and Wharton School considers where real estate markets are headed. It examines the impact of higher interest rates on US commercial real estate, and seeks to identify international opportunities. It also highlights defences for real-estate rich portfolios, most important of which is sensible asset allocation. · Read "Protecting The Value Of Real-Estate Rich Portfolios" Ranking Funds in Spain and ItalyThe Alpha League Tables, produced by EDHEC and EuroPerformance, seek to rank asset management companies through a measure performance based on alpha creation. Special reports have been released on the Italian and Spanish markets, where internationally invested funds dominate -- something the authors explain in terms of the low stock market capitalisation of the countries and the need for managers to look for higher levels of liquidity in larger markets.
Integrated PlanningTrusts in SwitzerlandWithers has published a paper discussing the draft guidelines on the taxation of trusts, as currently being worked on by the Swiss Tax Conference. An advance copy of the draft guidelines "makes for some worrying reading", according to the author, who offers views on issues to be addressed, as well as wider implications for countries wishing to recognise trusts.
Changes Relating to Immigration to the UKThe UK Home Office recently tightened rules governing applications for indefinite leave to remain (ILR) in the UK. In particular, all work-related or high net worth categories now need to have spent a longer period in the UK before being allowed to apply for ILR. A newsflash by Macfarlanes outlines the issues.
Managing Risk and Liability ExposureAvian FluThe likelihood of a human H5N1 pandemic remains difficult to estimate with any degree of certainty, representing a dilemma for investors. How to respond? Research by Citigroup suggests that avian flu is a rising risk to the global economic outlook. In a detailed report, Citigroup sets out the key facts, along with potential scenarios for economies, markets, and asset classes.
International TrendsViewpoint: China / Emerging MarketsTwo short papers from TCW explore international investment themes relating to China and emerging markets. Both are broadly positive on future trends and opportunities, while also describing some of the high-level risks.
Business Owner IssuesFamily Business ExemplarsThe JPMorgan Private Bank Family Business Honours programme aims to recognise achievement, share experience and promote best practices among UK-based family businesses. In 2005, nineteen family firms were hounoured in three areas of best practice: family governance (winner: Ringtons Holdings Limited), social responsibility (winner: Bestway Group), and business success (winner: Walkers Shortbread Ltd.). A paper by JPMorgan Private Bank offers case studies of the 2005 winners, with a view to shedding light on "what it takes to be a great family business," as well as a nomination pack for the 2006 awards (closing date: 31 May 2006).
Studying the Role of Inheritance in Family FirmsWhat role does hereditary family management play in the performance of family firms? A paper by the Centre for Economic Performance draws on survey evidence from 730 medium-sized manufacturing firms in France, Germany, the UK, and the US. The authors find that family ownership seems to improve management practices modestly, however, where the CEO is based on selecting the eldest son, management practices tend to be "extremely bad".
Family Continuity and GovernanceThe Future of RetirementIncreasing longevity presents issues to us all in terms of how we live and work. According to the UN, the number of people aged over 60 is projected to reach almost two billion by 2050, or a fifth of the world's population. In order to encourage debate, HSBC has conducted a comprehensive survey on attitudes to ageing, longevity and retirement - among 21,329 individuals and 6,018 private sector employers in 20 countries worldwide. The results compare the attitudes of employers and consumers on ageing and retirement.
Strategic PhilanthropyMaking Aid WorkRecent events have put foreign aid back in the spotlight as a means to "make poverty history." But how effective is foreign aid? An article by Peter Boone argues that, to have a real impact on extreme poverty, aid needs to be much more carefully targeted, allocated on the basis of sound scientific evidence of its effectiveness, and delivered through well-designed institutions.
Family Office Practice ManagementEvidence of Appetite Among Family Offices for Private EquityEvidence from the US suggests that wealthy families have renewed their interest in private equity. A survey by Dow Jones found that funds coming from family offices accounted for 11% of funds raised by US private equity firms in 2005 -- up from just 1.2% on average in the previous two years, and more than the amount committed by corporate pension funds.
Understanding the New FSA Regime on Use of Dealing Commissions in the UKAt the start of the year, the FSA introduced a new regime governing the use of dealing commission by investment managers. AIMA's Dealing Commission Working Group has prepared a series of questions and answers, designed to shed light on the implications of the new regime for all investment managers.
Technology TrendsUsing Computers to Increase ProductivityWhat has been the real impact of information and communication technologies on productivity? According to an article published in CentrePiece, multinational enterprises - and US multinationals in particular - appear to have higher productivity based on successful management and processes to get more from IT. Unfortunately, there is evidence to suggest that European firms lag behind their US counterparts in this area.
Five Technologies You Need to Know About"Prediction is very difficult, especially about the future." So quotes smallbizpipeline, but it is still willing to have a go at predicting which emerging technologies will have the most impact on computing in the very near future. Their list comprises emergent technologies that few of us will have heard of, but which many of us are already starting to use.
Family EducationA Legacy of JK Galbraith: Good Writing?The late Professor JK Galbraith was admired for the wit and fluency of his writing -- in contrast to the dry prose of many of his fellow economists. Many of his phrases - "conventional wisdom", "affluent society" and "countervailing power" - have become part of our language. In conversation with the Institute of International Studies at Berkeley, the economist described (among other topics) his approach to writing, along with observations on the pitfalls of using irony and humour. It is vital, he commends to any writer "to be aware of the music, the symphony of words, and to make written expression acceptable to the ear."
Family Office Exchange NewsFOX Member Survey Results AvailableResults of the Family Office Technology Member Survey are now available. Members reported whether functions were performed in-house or outsourced, what software they are using, how they rated the software used as well as any plans to change vendors.
Register for FOX University: Family Office 101, 26 - 27 June, 2006Developing a structure for sustaining wealth is no simple task. This workshop will discuss the core issues that must be examined in order to effectively establish a robust family office, identify the right advisors, and establish metrics of success.
Register for the Private Trust Company Workshop 27 - 28 June, 2006This program is essential for any wealth owner or family office executive who is considering creating a private trust company or is in the early stages of establishing one. In this exclusive program, FOX brings you the top authorities on private trust companies, from leading advisors to wealth owners and family office executives with first-hand experience.
Webinar Replays Newly Available on the FOX Website8/3/06: Flight Risk:
Aviation Emergency Response
Planning 22/3/06: Investing in
the Global Village: Current Considerations in Private
Equity 19/4/06: "Passing the
Buck?": What Every Family Office Should Know About
Reinsurance 3/5/06: Using Risk
Assessment Tools to Enhance Family Strategic
Planning |
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