دانلود کتاب Family Wealth Management: Seven Imperatives for Successful Investing (Raffles Family Wealth And Legacy Series)

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Contents
Foreword
Preface
Acknowledgments
INTRODUCTION AND OVERVIEW: A CRITICAL TIME FOR FAMILY INVESTORS
1 Setting Out a New Approach to Family Wealth Management
Continuity and Change
A Unique Time for Family and Finance
A Comprehensive and Balanced Approach
Family-Centric
Structured and Managed for Multiple Purposes
Based on a Different Model and Practical Framework of Investment
Considering a Goals-Based Approach to Wealth Management
An Integrated, Disciplined, and Documented Approach
Managed by the Horizons, Not the Headlines
Fully Global in Seeking Opportunity
Sustainable and Principled Investing
Integrating the Family Business into Family Wealth Plans
Defining and Managing Risk
Supported by a Fully Aligned, Effective, and Efficient Ecosystem
Monitoring Performance and Cost against Internal Goals and External Benchmarks
Family Engagement and Education
An Integrated and Holistic Approach
Consistent with Family Approach to Governance and Leadership
Business Family Parallel
Unchanging Purpose in a Changing World
2 A History of Family Wealth
Ghosts of a Gilded Era
Losing Family Wealth and Stature
Vast and Rapid Accumulation of Wealth
Three Generations of Crisis and Challenge
Where We (Thought We) Were
Bubbles
Differing Perspectives
Short-, Medium-, and Long-Term Change
Some Old Investing Truths Remain Relevant in the New World
Resetting Best Practice — and “Next Practice” — in a World of Change
Wide Range of Potential Outcomes
3 Addressing the Differences between Private and Institutional Investing
Family Risk and Opportunity
Taxation
Cash Flow Patterns
Family Complexity and Influence
Behavioral Biases
Identifying and Managing the Risks of the Family as a Social Unit
The Challenge and the Opportunity
4 Reinforcing the Importance of a Disciplined Investment Process
Start with the End in Mind
The Tyranny of the Urgent
Mastering the Phases of Family Wealth Strategy
Imperative 1: Establish Family Vision, Values, and Goals
Imperative 2: Set a Practical Framework for Family Investment
Imperative 3: Set a Long-Term Family Wealth Strategy and Define the Asset Allocation Model
Imperative 4: Draft the Investment Policy Statement and Refine Investment Tactics
Imperative 5: Monitor Performance and Respond to the Need for Change
Imperative 6: Select and Manage an Ecosystem of Trusted Financial Advisors
Imperative 7: Engage and Educate the Family
Process Objectives and the Definition of Success
THE SEVEN IMPERATIVES
IMPERATIVE 1: ESTABLISH FAMILY VISION, VALUES, AND GOALS
5 Documenting Family Philosophy, Vision, and Values
Understanding Context and History
What Is Family Culture?
No Single Approach
Defining a Clear Philosophy of Family Wealth
Balancing Different Views
Immigrants and Natives to the Land of Wealth
Consensus and Coexistence
Investment Implications
Creating a Family Vision
Family Values
Values Relevant for Investing
Determining an Investment Profile
Capabilities and Constraints
Financial Scale, Sophistication, and Experience
Trusts’ Terms and Letters of Wishes
6 Determining the Purpose of Wealth and Setting High-Level Financial Goals
Sample Family Goals
High-Level
Specific
Hierarchy of Goals
Lifetime-Legacy Approach
Lifetime Requirements
Legacy Goals
Combining Lifetime and Legacy Assets in a Single Portfolio
Determine the Family Balance Sheet and Range of Potential Options
The Family Balance Sheet
Key Questions for Family Investors
7 Structuring Assets and Aligning Investments to Serve Multiple Purposes
Multiple Nonfinancial Purposes to Consider as Well
Dividing the Pool
Institutionalizing Values and Opportunities across Generations
Trusts
Matching Form to Purpose
Corporations and Companies
Partnerships and Dedicated Fund Structures
LLCs and LLPs
Other Vehicles
Multijurisdictional Approaches
Tax Obligations and Options
Types of Taxes
Marital Issues
Aligning Investment with the Purpose of Structure
8 Integrating the Family Business into Wealth Management Strategy
Definition of a Family Firm
Evolving Role Across Generations
Differing Risk Profiles
Emotional Ownership
Family Business and Portfolio Consequences
Creating Liquid Family Wealth through Sale of a Family Business
IMPERATIVE 2: SET A PRACTICAL FRAMEWORK FOR FAMILY INVESTMENT
9 Rethinking Modern Portfolio Theory, Considering Goals-Based Wealth Management
Historic Background to Asset Allocation
What Is the Essence of Modern Portfolio Theory?
A Popular Choice
An Alternative View
Post-Modern Portfolio Theory
The Traditional “60–40”
Firmly Focused on Family Goals
The Rise of Goals-Based Wealth Management
Suitable, but Is It Optimal?
10 Reviewing Different Approaches to Asset Allocation
The Evolution of Asset Allocation
Core and Satellite
The S-Curve: Balancing Risk and Return, Short and Long-Term
The (Alternative) Time Dimension
Opportunity and Choice
Ivy League Lessons
The Role of Scenario Planning
Holistic and Active Portfolio Management
Best (and Next) Practice: The Expert Family Office’s Approach to Investing
Step 1: Adapting to the Macroeconomic Context through Scenario Planning
Step 2: Redefining Asset Classes and Identifying Long-Term Megatrends
Step 3: Incorporating Selected Quantitative Inputs
Step 4: Incorporating the Implications of the Global Context
Step 5: Identifying and Managing Strategic Risk
Step 6: Seeking Alpha
Step 7: Rolling All of the Elements Above into a Single Global Capital Allocation Strategy
Choosing a Framework That is Right for Each Family
11 Comprehensive Risk Management
Old Tools Not Sharp Enough for New Challenges
Black Swan Events
What is Risk?
The Evolution of Risk
Financial Risks
Family Risks
Less Stability in the New World Order
Government Overspending
Tax Climate Heating Up
The Starter Kit: Four Basic Principles of Risk Management
What Cannot Be Controlled?
What Can be Controlled?
IMPERATIVE 3: SET A LONG-TERM FAMILY WEALTH STRATEGY AND DEFINE THE ASSET ALLOCATION MODEL
12 The Elements of Long-Term Strategy
Components of the Plan
An Integrated Framework
Integrated Wealth Management
Starting with High-Level Family Objectives
Legacy Assets
Cash Flow Forecast
The Core Role Played by Cash Flow
Other Factors
Asset Allocation and Long-Term Strategy
Indicative Allocation
Keeping Up with the Changes
Planning Constraints
13 Investing for the Future: Mega-Themes and Principled Investment Management
Trends and Opportunities
Mega-Theme Opportunities
Climate Change and the Environment
Resources and Energy
Agricultural Land
Education and Related Activities
Health Care, Wellness, Aging, and Obesity
Direct and Co-investing
Other Opportunities
Setting Priorities, Exploring Synergies
Principled and Sustainable Investing
Redefining Return
Negative Screens
Green Investing
Financial Ethics
Broader Definition of Success
14 Long-Term Strategy Document (Example)
The Family Context
History
Culture
Values
Vision
Philosophy of Wealth
Distributions
Family Goals and Objectives
Family Balance Sheet
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Long-Term Strategy
Family Elements of Long-Term Strategy
Family Financial Ecosystem and Advisor Selection
Asset Allocation and Investment Policy
Asset Classes and Investment Strategies
Operational Considerations
Performance Reporting and Risk and Cost Management
IMPERATIVE 4: DRAFT THE ANNUAL INVESTMENT POLICY STATEMENT AND REFINE INVESTMENT TACTICS
15 Drafting the Annual Investment Policy Statement and Refining Investment Tactics
Investment Universe and the Role of Asset Classes
Drafting the Investment Policy Statement
The Value of Simplicity
IPS as the Bridge between Insight and Action
16 Rethinking the Role of Traditional Investment Assets in the Family Portfolio
Cash and Fixed Income
Expected Returns from Fixed Income
Range of Strategies
Past and Future Returns
Why Hold Bonds at All?
Equities
Expected Return from Equities
Reversion to the Mean
Can Investors Outperform the Indices?
Testing the Value of Value Investing
Alternatives to Traditional Assets
17 Assessing Alternative Assets and the Search for Recurring Alpha
Interest in Alternatives
Alternate Views about Alternative Assets
Performance Shortfalls
Real Estate
Private Equity
Direct Strategies
Infrastructure
Credit Strategies
Hedge and Absolute Return Funds
Commodities
Gold
Foreign Exchange
Swaps, Derivatives, and Structured Notes
Islamic and Other Religious Products
Collectibles, Exotica and Passion Investing
A Broader Search for Alpha and Creative Alternatives
18 Selecting Individual Investments and Investment Managers
Issues to Consider
Active versus Passive Management
Dispersion and Persistence
Investment Style
Geography
Public versus Private
Direct versus Funds
Access
Market Exposure (Long versus Short)
Tax Factors
“The Five Ps” of Investment Manager Evaluation
Performance
People
Philosophy
Process
Price
Documentation and Discipline
Initial Allocation and Tactical Decisions
19 Investment Policy Statement (Example)
Investment Policy Statement (IPS): The Reynolds Family
Purpose
Scope
Objectives
Investment Principles
Expected Return
Income Needs
Liquidity
Risk Tolerance
Planning Horizon
Asset Class Universe
Proposed Asset Allocation (and Target Ranges)
Rebalancing
Quality Guidelines and Portfolio Constraints
Tax Implications
Investment Manager Selection
Investment Decision Making and Responsibilities
Mayfair Family Office (Investment Advisor/Outsourced CIO)
Investment Managers
Custodian
Monitoring and Review
IMPERATIVE 5: MONITOR PERFORMANCE AND RESPOND TO THE NEED FOR CHANGE
20 Monitoring Performance against Internal Goals and External Benchmarks
Investment Manager Monitoring
Benchmarks
Absolute Benchmarks
Relative Benchmarks
Risk-Adjusted Measurement
Other Factors
Analytical Tools
Concerns with Standard Statistics
Reporting to Multiple Stakeholders
Other Reports
Investment Policy Statement Review
The Family Wealth Strategic Dashboard
What Gets Measured
21 “White Water Investing” and the Management of Wealth in Turbulent Times
Adapting to Change
White Water and Whitecaps
Sailing with the Right Crew
Throttle Back
Proceed with Caution — and Increase Sensitivity to Risks
Cross-Check
Hold More Frequent Reviews with More Detailed Reporting
Remain Flexible
Batten Down the Hatches
Ensure that the Hull is Sound
Jettison Unwanted Cargo
Make Needed Change
Stay Ahead of or Sail around the Worst Storms
Seek Safe Harbors
Pick Up Valuable Flotsam
Keep Your Crew Focused and Content
Resume Full Speed When the Crisis is Over
IMPERATIVE 6: SELECT AND MANAGE AN ECOSYSTEM OF TRUSTED FINANCIAL ADVISORS
22 Designing the Ecosystem and Selecting Advisors
Managing the Ecosystem
A System Centered on the Family
The Family Center
The Inner Circle of Trusted Advisors
Network of Selected Professionals
What Is Wrong with the Current System?
Chief Investment Officer
Investment Committee
Selecting and Managing Advisors
Individual Elements and Holistic Team
23 The Role of the Family Office
Typical Family Office Activities
Rationale for Having a Family Office
Comprehensive Wealth Management
Administration, Reporting, and Family Services
Objective Advice and Counsel
Family Office as Repository of Values
Family Office Services
Internal or External?
Organizing and Outsourcing the CIO Function
Choosing the Right Multifamily Office
Separate from the Family Business
Range of Costs
Cautions
A Focus on the Family’s Objectives
IMPERATIVE 7: ENGAGE AND EDUCATE THE FAMILY
24 Determining the Right Wealth Distribution Strategy
The Financial Perspective
The Family and Individual Perspective
Philosophy, Practicalities, and Policy
Hard Issues in Distribution Policy
A Sustainable Rate of Withdrawal
Reculer pour Mieux Sauter
What is the Right Amount to Leave to an Heir?
How Much is too Much?
At What Age?
Practical Distribution Options
Milestone Methodology
Making Their Own Way
Criteria and Values
Family Employment Policy
Family Code of Conduct
Beneficiary Financial Management Skills
25 Preparing the Family for Successful Transfer of Wealth
A Tidal Wave of Wealth
Engagement and Education
Emotional Ownership
What Do We Need to Learn?
Checklist for Financial Education
Engagement, Education, and Experience
Family Structures
Costs of Disengagement
History and Values
Preparing the Money for the Heirs
Preparing the Heirs for the Money
Understanding and Engaging with the Full Definition of Wealth
How Can We Best Learn What We Need to Know?
How Much Should Be Invested in Family Education and Engagement?
Quantum of Investment
Return on Investment
Two Key Questions
A Shared Responsibility
Two Sides of the Coin
CONCLUSION
26 Pulling It All Together: The Successful Management and Transfer of Wealth Across Generations
Serving Multiple Family Purposes
Adopting a New Approach
Integrated Approach
Achieving Required Returns
Successful Transfer of Wealth Across Generations
Hope is Never a Strategy
About the Authors
About Northwood Family Office
About Raffles Family Wealth Trust and www.raffleslegacylearning.com