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Family Wealth Management: Seven Imperatives for Successful Investing in the New World Order

Family Wealth Management: Seven Imperatives for Successful Investing in the New World Order

Mark Haynes Daniell, Tom McCullough

ISBN: 978-0-470-82429-0

Nov 2013

352 pages

In Stock

CAD $76.00

Description

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

Foreword xi

Preface xvii

Acknowledgments xxix

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

CONCLUSION 393

Chapter 26 Pulling It All Together: The Successful Management and Transfer of Wealth Across Generations 395

Bibliography 403

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

Index 423