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Governance

January 19, 2012
Long-term approach paid off for family offices during recession

Single family offices in the US and Europe were largely well prepared to ride out the financial crisis of 2008 and the subsequent difficult market environment, making very few strategic changes to their asset allocation.

Single family offices in the US and Europe were largely well prepared to ride out the financial crisis of 2008 and the subsequent difficult market environment, making very few strategic changes to their asset allocation.

That’s according to new research by American investment advisory firm Cambridge Associates, which surveyed 40 single family offices in the US and Europe in 2011.

December 15, 2011
India’s HNW wealth grows faster than global wealth

The amount of wealth held by high net worth individuals in India has increased faster than that held by rich people globally. That is according to the India Wealth Report, released by Indian wealth management firm Karvy Private Wealth.

The amount of wealth held by high net worth individuals in India has increased faster than that held by rich people globally.

That is according to the India Wealth Report, released by Indian wealth management firm Karvy Private Wealth. It found that while the fortunes of HNW individuals internationally grew by around 9% during the year, money held by Indian rich increased by more than 11%.

This made India one of the fastest-growing HNW populations in the world, accounting for 1.2% of global wealth, said the report.

November 30, 2011
Swiss wealth managers to lose billions on tax crackdown

Banks in Switzerland could lose as much as CHF50 billion (€40.7 billion) in assets under management as a result of a tax crackdown by the UK and Germany, says a new study. According to management consulting firm Booz & Co, wealth managers in Switzerland will also lose CHF1.1 billion in revenues, as clients with the two European countries withdraw their money before the tax treaties come into effect in 2013.

Banks in Switzerland could lose as much as CHF50 billion (€40.7 billion) in assets under management as a result of a tax crackdown by the UK and Germany, says a new study.

According to management consulting firm Booz & Co, wealth managers in Switzerland will also lose CHF1.1 billion in revenues, as clients with the two European countries withdraw their money before the tax treaties come into effect in 2013.

November 29, 2011
Sponsored feature - Transparency and family offices

Wall Street protests have triggered copy-cat street protests in financial capitals globally. Governments are scrambling to contain the upheaval and stay ahead of markets, with tax increases and more regulation, together with attacks on offshore bank accounts and tax increases on European property assets on the rise.

Ashley King-Christopher, Corporate Tax Partner at Speechly Bircham, looks at how family offices are dealing with a more transparent world.

November 29, 2011
Wealthy families and family offices should take quick action to clear tax arrears, says expert

Ultra-high net worth families and family offices in the UK need to move quickly and clear up their tax arrears to benefit from the Liechtenstein Disclosure Facility, according to an expert in international taxation.

Ultra-high net worth families and family offices in the UK need to move quickly and clear up their tax arrears to benefit from the Liechtenstein Disclosure Facility, according to an expert in international taxation.

“If families are not dealing with clearing [undisclosed assets], they are not doing the next generation any favours. The LDF is a way to change that at a time when passing on wealth is a challenge,” Philip Marcovici, a member of the board of wealth manager Kaiser Partner and a former partner at law firm Baker & McKenzie, told CampdenFO.

November 22, 2011
Risk is top concern for family offices

Risk management is of top priority for family offices in Europe, as they look to make the best of the uncertain global market environment, finds a new report by Campden Research.

Risk management is of top priority for family offices in Europe, as they look to make the best of the uncertain global market environment, finds a new report by Campden Research.

Entitled Beyond Uncertainty: Family Offices Adapt to Unpredictability, the survey, which analysed more than 50 single and multi family offices across Europe and was sponsored by UBS, found that family offices are increasingly outsourcing risk functions to better deal with monitoring the safety of their investments.

September 13, 2011
What model is best - single or multi?

Anything involving families is a recipe for dispute, and family offices are no exception. Should they stick to the core of money- management, or branch out into other areas, such as concierge services? Should it keep the sparky, entrepreneurial, risk-taking character of a business’s founder, or become a conservative institution that concentrates on wealth preservation, rather than creation?

Anything involving families is a recipe for dispute, and family offices are no exception. Should they stick to the core of money- management, or branch out into other areas, such as concierge services? Should it keep the sparky, entrepreneurial, risk-taking character of a business’s founder, or become a conservative institution that concentrates on wealth preservation, rather than creation?

September 1, 2011
Family offices outsource CIO function as exposure to hedge funds rise

Family offices are increasingly outsourcing the function of the chief investment officer, as they aim to monitor more efficiently their growing focus on hedge funds, according to a top investment expert.

Family offices are increasingly outsourcing the function of the chief investment officer, as they aim to monitor more efficiently their growing focus on hedge funds, according to a top investment expert.

August 11, 2011
Riots, the rich and London

One UK newspaper during the recent riots in London produced an interactive map of where all the rioting and disorder was taking place in the British capital. At first glance the map looked pretty scary – dots highlighting trouble were almost everywhere. With the Olympics less than a year away, it’s not an image the tourist authorities, nor for that matter the politicians, want to think too much about.

One UK newspaper during the recent riots in London produced an interactive map of where all the rioting and disorder was taking place in the British capital.

At first glance the map looked pretty scary – dots highlighting trouble were almost everywhere. With the Olympics less than a year away, it’s not an image the tourist authorities, nor for that matter the politicians, want to think too much about.

July 4, 2011
Coutts targets next generation with Wharton initiative

UK private bank Coutts & Co has enlisted NASA astronauts to help launch an educational programme for next generation clients, with the aim of teaching them to better manage wealth and develop business acumen.

UK private bank Coutts & Co has enlisted NASA astronauts to help launch an educational programme for next generation clients, with the aim of teaching them to better manage wealth and develop business acumen.

The main wealth management arm of the Royal Bank of Scotland announced on 4 July that it has conducted the first week-long programme in London, in partnership with the Wharton School of the University of Pennsylvania, as part of its initiative to provide wealth management advice and opportunities for its next generation clients.

June 27, 2011
Variety is the spice of life

Business models in the world of family offices are as varied as the families that run them. But Paul Golden says pressures on many family offices will lead to greater conformity in the years ahead

Business models in the world of family offices are as varied as the families that run them. But Paul Golden says pressures on many family offices will lead to greater conformity in the years ahead

John D Rockefeller, who, according to most estimates, was the richest man ever to have lived, once said if you want to succeed you should strike out on new paths, rather than travel the worn paths of accepted success.

March 16, 2011
Commission only

As a general case in point, the more you earn the less likely you will want the public to know about it. But potentially one of the lasting legacies of the financial crisis in 2008/09 is more transparency when it comes to remuneration levels in the world of high finance. That is of course with one caveat – the world of family offices, where remuneration levels look set to remain secret and vary hugely between differing jurisdictions and investment offices within each country. 

As a general case in point, the more you earn the less likely you will want the public to know about it. But potentially one of the lasting legacies of the financial crisis in 2008/09 is more transparency when it comes to remuneration levels in the world of high finance. That is of course with one caveat – the world of family offices, where remuneration levels look set to remain secret and vary hugely between differing jurisdictions and investment offices within each country.

February 24, 2011
Hong Kong family looks to invest in the UK

London-based property group Capital & Counties (CapCo) is in talks with one of Hong Kong’s wealthiest families, the Kwoks, to provide funding for the redevelopment of London’s Earls Court site, according to reports in the Financial Times.

London-based property group Capital & Counties (CapCo) is in talks with one of Hong Kong's wealthiest families, the Kwoks, to provide funding for the redevelopment of London's Earls Court site, according to reports in the Financial Times.

February 24, 2011
Porsche-VW merger delayed

Family-controlled German carmakers, Porsche and Volkswagen, announced on 23 February that their planned merger may not happen this year due to pending legal issues.

Family-controlled German carmakers, Porsche and Volkswagen, announced on 23 February that their planned merger may not happen this year due to pending legal issues.

The two carmakers had previously revealed plans to merge by the second half of this year, but unresolved legal issues relating to a failed takeover of VW by Porsche in 2008 are likely to delay the merger.

February 22, 2011
Murdoch family to reunite

As expected, Elisabeth Murdoch will join the board of her father’s media empire, following an agreement by News Corporation to purchase Murdoch’s television production company, Shine Group.

As expected, Elisabeth Murdoch will join the board of her father's media empire, following an agreement by News Corporation to purchase Murdoch's television production company, Shine Group.

February 21, 2011
Indian telecommunications company in hot water

Reliance Communications, India’s second-largest telecommunications company, saw its shares fall by almost 50% over the last year, and further dropped by nearly 7% last week amid corruption accusations.

Reliance Communications, India's second-largest telecommunications company, saw its shares fall by almost 50% over the last year, and further dropped by nearly 7% last week amid corruption accusations.

Shares of the family-controlled telecommunications group, headed by second-generation Anil Ambani, had been one of the worst performers in India's stock exchange, and had slipped from Rs 800 (€13) to Rs 93 (€1.5).

February 18, 2011
Pinault takes control of Gucci as results announced

Family-controlled luxury goods company, PPR, announced on 17 February that group head Francois-Henri Pinault will take direct control of the luxury business group, amid an announcement of a rise in the company’s profits.

Family-controlled luxury goods company, PPR, announced on 17 February that group head Francois-Henri Pinault will take direct control of the luxury business group, amid an announcement of a rise in the company’s profits.

The Paris-based company said in a statement that the luxury business group, which includes Gucci, Bottega Veneta and YSL, will report directly to Pinault, second-generation head of PPR, and the individual brands will continue to retain autonomy under its respective directors.

February 17, 2011
Hermes talks tough to LVMH

Family-controlled luxury goods company Hermes has said that it wants fellow family business LVMH to reduce its stake in Hermes to less than 10%, according to a report in Bloomberg.

Family-controlled luxury goods company Hermes has said that it wants fellow family business LVMH to reduce its stake in Hermes to less than 10%, according to a report in Bloomberg.

LVMH currently holds a 20% stake in Hermes, which, according to executive chairman Bertrand Puech, is "not normal". He wants LVMH chief executive Bernard Arnault to reduce his stake by more than half to make available the other shares to the open market.

February 15, 2011
Bertarelli’s fund manager set for first deal

Billionaire Ernesto Bertarelli’s new asset manager, Northill Capital, is set to complete its first deal from a potential $1 billion war chest, according to a report in Financial News.

Billionaire Ernesto Bertarelli’s new asset manager, Northill Capital, is set to complete its first deal from a potential $1 billion war chest, according to a report in Financial News.  

John Little, who joined Northill last year after being vice-chairman of asset management company BNY Mellon, told Financial News: “Northill has $1bn from the family to deploy, in seed capital or equity capital. That is a target, it could be more, it could be less.”

February 15, 2011
Louis Dreyfus faces uncertain future

Family-controlled agricultural trader Louis Dreyfus’ plans for a possible merger with rival Olam International has come to an end, raising speculations about the future of the company.

Family-controlled agricultural trader Louis Dreyfus' plans for a possible merger with rival Olam International has come to an end, raising speculations about the future of the company.

Merger plans between Paris-based Louis Dreyfus and Singapore-based Olam, first announced in September 2010, have been reported to have collapsed due to over differing views on how to grow the business. Analysts say that a merger between the two would have created the world's third-largest agricultural trading house, with an estimated market value of between $15 and $18 billion.

February 14, 2011
Fiat chairman to head family’s investment company

John Elkann, head of family-controlled Fiat, has taken over as chief executive of the family’s investment company Exor, adding to his current role of chairman.

John Elkann, head of family-controlled Fiat, has taken over as chief executive of the family’s investment company Exor, adding to his current role of chairman.

In a statement, the Turin-based investment company said that besides Elkann’s appointment as chief executive, it had also appointed its first chief investment officer. Tobias Brown, former investment officer for late billionaire Sir James Goldsmith, is to take over Exor’s worldwide investment activities.

February 11, 2011
Grandson of oil tycoon dies

Jean Paul Getty III, grandson of possibly the world’s first billionaire, oil tycoon Jean Paul Getty, has died aged 54.

Jean Paul Getty III, grandson of possibly the world's first billionaire, oil tycoon Jean Paul Getty, has died aged 54.

Beyond his famous surname, Paul Getty III is best known for being kidnapped in Rome at the age of 16 and held captive for five months before his grandfather, decided to pay the ransom.

February 9, 2011
Pears family’s investment firm expands services

Investment firm Talisman Global Asset Management announced on 8 February that it is expanding its investor base to include external clients, besides managing operations of its core investor, the William Pears Group.

Investment firm Talisman Global Asset Management announced on 8 February that it is expanding its investor base to include external clients, besides managing operations of its core investor, the William Pears Group.

The London-based investment firm was first established in 1998 as the asset management arm of the Pears family – one of the UK's wealthiest families with an estimated fortune of £1.5 billion. But it will now offer its investment services to external clients including family offices, endowments and foundations.

February 8, 2011
Fiat chief in hot water

Chief executive of carmakers Fiat and Chrysler, Sergio Marchionne, is facing wrath from Italy and the US for his comments on shifting Fiat’s headquarters, and describing the interest rates charged on American bailout loans as “shyster”.

Chief executive of carmakers Fiat and Chrysler, Sergio Marchionne, is facing wrath from Italy and the US for his comments on shifting Fiat's headquarters, and describing the interest rates charged on American bailout loans as "shyster".

February 4, 2011
Amid profits comes battle at French luxury companies

Family-controlled Hermes will be relieved that it notched up a 25% growth in sales in 2010 as it will bolster its defence from the predatory arch rival LVMH.

Family-controlled Hermes will be relieved that it notched up a 25% growth in sales in 2010 as it will bolster its defence from the predatory arch rival LVMH.  

In a statement, the Paris-based company said that full-year sales increased to €2.4 billion from €1.9 billion the previous year. The growth was attributed to strong business in all regions, with sales in America and Europe recording growth of 25% and 16% respectively.