Independent Thinking. The Changing Landscape for Wealth Management

Transcription

1 Independent Thinking The Changing Landscape for Wealth Management October

2 Wealth Management Common Central Tenets Common central tenets to successful wealth management relationships: The Changing Landscape for Wealth Management 2

3 The Family Office Approach Institutions/Trusts/Captives Core family office wealth management principles of: capital preservation low costs long term relationships Can also be applied to improve outcomes with Institutional, Trust and Captive asset management. The Changing Landscape for Wealth Management 3

4 The Family Office Approach to Wealth Management Client Driven Professionally staffed and dedicated unit for the management and administration of assets and business affairs of their clients. Aligned Being independent, family offices avoid the conflict of interests often found in other wealth management models. Tailored It may provide a combination of services from legal, accounting, tax, trust, investment and asset management, philanthropy and educational as well as others. Personal High degree of client interaction. The Changing Landscape for Wealth Management 4

5 Family Offices Family Businesses Concept has its roots back in the 6th century. 1 Modern understanding of family offices was developed in the 19th century. 1 o 1838 the family of J.P. Morgan founded the House of Morgan o 1882 the Rockefellers founded their family office 1 Establishment of a family office often the result of a transitory phase in the history of the family and the family businesses. 2 In the US alone, over 3,000 single- and multi-family offices manage in excess of USD1.5 trillion. 3 The Changing Landscape for Wealth Management 5

6 Benefits of the Family Office Approach Independent product neutral and free to select the best funds Alignment with client s objectives Fee only and pass all rebates or sales commissions back to the client account Preferential service from established service providers Aggregated purchasing power Avoid conflict of interest Long-term investor mind-set Confidentiality The Changing Landscape for Wealth Management 6

7 Family Office Structures A Brief Comparison Single Family Office Dedicated solution for families with assets in excess of USD100million Greater privacy and control Family bears full cost of the operation Delay in establishing family office: structure, hiring professional staff, installing IT systems etc. Multi-Family Office Access for families with USD5million+ Clients do not have exclusive control of operations Participate at a fraction of the running costs Immediate access to established team of professionals and infrastructure The Changing Landscape for Wealth Management 7

8 Summit Contact Details John Howard ACA, CFA Registered Investment Advisor President Summit Asset Management Limited Address: John W. Lovell Building Suite 100, Lower Collymore Rock St. Michael BB11115 Barbados Phone: (246) Website: The Changing Landscape for Wealth Management 8

9 Notes and Disclaimers 1. Wikipedia 2. IMD Global Family Business Center Private Wealth and the Family Office 3. Capgemini The Global State of Family Offices This document is prepared by Summit Asset Management Limited, hereinafter referred to as Summit. Whilst every effort has been made to ensure the information and methodology provided is correct and accurate, Summit cannot guarantee the accuracy, correctness and completeness of such information. The information and opinions contained herein have been amassed from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the methodology shall be taken as a representation for which Summit or its affiliates or any of their employees incur any responsibility. Neither Summit nor its affiliates accept any liability whatsoever for any loss arising from any use of this document or its contents. Information in this document regarding services of Summit is applicable only in jurisdictions where such services may lawfully be offered for sale and is void where prohibited by law. All Summit services are subject to the terms of applicable agreements. This document is for informational purposes only and does not constitute a recommendation or an offer to sell or a solicitation of an offer to buy any investment or to take part in any other transaction. It does not in any way provide advice, advertise or promote any particular investment or strategy, nor does it encourage persons or entities to enter into any investment transaction or into any legal relations for the provision of any investment management or advisory services that may be referenced herein and has no legal or contractual value. Nothing contained in this document, including any information, opinions or strategies discussed, is intended to be or should be construed as legal, tax, investment or other advice. The information or opinions expressed are of a general nature and are not relevant to any individual or legal entity or their specific investment objectives, financial situation and needs and no such inference should be made. It is the responsibility of the individual or institution to make their assessment and decision. Summit and/or its officers, directors and employees may have positions in any securities mentioned in this portfolio (or any related investment) and may from time to time add to or dispose of any such securities and may also perform or seek to perform investment advisory services for companies related to securities in this portfolio. The strategies set out in this document may expose you to significant risk and you should carefully consider your ability to bear such risks through consultation with your legal, accounting and other advisors and consult the Risk Warning Section of the prospectus/offering memorandum or any other appropriate risk disclosure document before making the investment. Investments in alternative investments involve the risks of losing part or all of the investment, the absence of a regular market and illiquidity. Investments in emerging markets may be extremely volatile and subject to sudden fluctuations of varying magnitude due to a wide range of direct and indirect influences. Such characteristics can lead to considerable losses being incurred by those exposed to such markets. Past performance is not a guide to future performance. The information and opinions contained within this document are based upon rates of taxation applicable at the time of publication but which are subject to change from time to time. The value of any investment or income may go down as well as up and you may not get back the full amount invested. When an investment is denominated in a currency other than your local or reporting currency, changes in exchange rates may have an adverse effect on the value, price or income of that investment. In the case of investments for which there is no recognized market, it may be difficult for investors to sell their investments or to obtain reliable information about their value or the extent of the risk to which they are exposed. This document may not be reproduced in whole or in part, or referred to in any manner whatsoever nor may the information, opinions, methodology and conclusions contained in it be referred to without in each case the prior express consent of Summit. The Changing Landscape for Wealth Management 9