Family Wealth Management: Seven Imperatives for Successful Investing in the New World Order
Praise for Family Wealth Management
"Investing with a long-term family perspective requires a deep understanding of both family and finance; Family Wealth Management addresses these two topics in a seamless fashion, providing a comprehensive reference and practical approach for families interested in preserving both lifestyle funds and legacy wealth through all types of investment environments."
H.S.H. Prince Max von und zu Liechtenstein, Chief Executive Officer, LGT Group
"Family Wealth Management provides a much-needed practical guide to the intersection of family and finance. The seven imperatives and the many practical examples, case studies, and checklists will make this book an important reference piece for every wealthy family and the advisors who serve them."
John Benevides, President, CTC Consulting, Harris myCFO, LLC
"Very well structured and comprehensive in its coverage, this impressive book captures many of the most valuable lessons learned by legacy families, both positive and negative. Those lessons, and the entire content of this book, can provide useful guidance for all family investors and their advisors."
Andreas Baer, Partner, Baer & Karrer
"Owning, managing, and nurturing significant wealth involves hard work, discipline, and engagement. This valuable guide puts the family at the core of the complex yet comprehensible web of decisions and disciplines needed to set a family's own successful investment strategies."
Alex Scott, Executive Chairman, SandAire
"Thoughtful, expert, and practical . . . highly recommended."
Iu-Jin Ong, Founder, One Global Asia Family Office and Deauville Private Office
"Finally! A book that puts family investors back in the driver's seat where they belong. This excellent book provides fresh, sensible thinking and a clear forward road map for wealthy families. This family-centric approach is very positive and long overdue."
Dirk Jungé, Chairman, Pitcairn
"In Family Wealth Management, Mark Daniell and Tom McCullough demonstrate that managing for sustainable and productive family wealth is all about integrating across family and finance. Not only do they make that critical point, they lay out a practical and comprehensive guide for doing just that. It should be required reading for both family leaders and their advisors."
Roger Martin, Dean, Rotman School of Management, University of Toronto
"Daniell and McCullough skillfully weave theory and practice to demonstrate how successful multigenerational wealth transfer starts with a family's vision and values."
Sara Hamilton, CEO, Family Office Exchange
INTRODUCTION AND OVERVIEW: A CRITICAL TIME FOR FAMILY INVESTORS 1
Chapter 1 Setting Out a New Approach to Family Wealth Management 3
Chapter 2 Arriving at a Point of Inflection in the History of Family Wealth 23
Chapter 3 Addressing the Differences between Private and Institutional Investing 45
Chapter 4 Reinforcing the Importance of a Disciplined Investment Process 57
THE SEVEN IMPERATIVES 71
IMPERATIVE 1 ESTABLISH FAMILY VISION, VALUES, AND GOALS 73
Chapter 5 Documenting Family Philosophy, Vision, and Values 75
Chapter 6 Determining the Purpose of Wealth and Setting High-Level Financial Goals 89
Chapter 7 Structuring Assets and Aligning Investments to Serve Multiple Purposes 105
Chapter 8 Integrating the Family Business into Wealth Management Strategy 119
IMPERATIVE 2 SET A PRACTICAL FRAMEWORK FOR FAMILY INVESTMENT 133
Chapter 9 Rethinking Modern Portfolio Theory, Considering Goals-Based Wealth Management 135
Chapter 10 Reviewing Different Approaches to Asset Allocation 149
Chapter 11 Comprehensive Risk Management 165
IMPERATIVE 3 SET A LONG-TERM FAMILY WEALTH STRATEGY AND DEFINE THE ASSET ALLOCATION MODEL 185
Chapter 12 The Elements of Long-Term Strategy 187
Chapter 13 Investing for the Future: Mega-Themes and Principled Investment Management 199
Chapter 14 Long-Term Strategy Document (Example) 217
IMPERATIVE 4 DRAFT THE ANNUAL INVESTMENT POLICY STATEMENT AND REFINE INVESTMENT TACTICS 235
Chapter 15 Drafting the Annual Investment Policy Statement and Refi ning Investment Tactics 237
Chapter 16 Rethinking the Role of Traditional Asset Classes 249
Chapter 17 Assessing Alternative Assets and the Search for Recurring Alpha 267
Chapter 18 Selecting Individual Investments and Investment Managers 285
Chapter 19 Investment Policy Statement (Example) 299
IMPERATIVE 5 MONITOR PERFORMANCE AND RESPOND TO THE NEED FOR CHANGE 309
Chapter 20 Monitoring Performance against Internal Goals and External Benchmarks 311
Chapter 21 “White Water Investing” and the Management of Wealth in Turbulent Times 321
IMPERATIVE 6 SELECT AND MANAGE AN ECOSYSTEM OF TRUSTED FINANCIAL ADVISORS 327
Chapter 22 Designing the Ecosystem and Selecting Advisors 329
Chapter 23 The Role of the Family Office 341
IMPERATIVE 7 ENGAGE AND EDUCATE THE FAMILY 359
Chapter 24 Determining the Right Wealth Distribution Strategy 361
Chapter 25 Preparing the Family for Successful Management and Transfer of Wealth 375
Chapter 26 Pulling It All Together: The Successful Management and Transfer of Wealth Across Generations 395
List of Essay Writers 407
List of Figures and Tables 409
About the Authors 411
About the Raffles Family Wealth Trust 415
About Northwood Family Office 419