Family Wealth Management – Mark Haynes Daniell and Tom McCullough

Seven Imperatives for Successful Investing in the New World Order

Introducing a fresh perspective on wealth management, with proven solutions to the challenges of preserving wealth and investing well in turbulent times

Family Wealth Management is coauthored by two experts in the field of private wealth – one, a former director of Bain & Company and the chairman of two of the world’s largest family trusts, and the other, a CEO of a leading global family office and professor of finance from University of Toronto. The book introduces you to a unique model of wealth management that produces the desired return outcomes while being consistent with a family’s overarching goals and values. The approach combines the best traditional investment and portfolio management practices with innovative new approaches designed to successfully navigate through economic climates both fair and foul. While the authors address the critical “hard” issues of asset management, they also emphasize important “soft” issues of working with families to ensure that actions are congruent with objectives, in alignment with family governance principles and designed to help sustain and grow family wealth over multiple generations.

The authors provide clear guidance on how to master each component.

• How to establish clear family vision, values, and goals as a critical foundation to a sound wealth management strategy
• How to establish a practical, integrated investment framework that will ensure a consistent, disciplined approach in all environments
• How to set a long-term family wealth strategy and define an asset allocation model that will produce the desired results
• How to draft an annual investment policy statement and refine the investment tactics based on capital markets trends and changes in the family’s circumstance
• How to effectively monitor performance and respond to the need for change
• How to carefully select and manage an ecosystem of experienced, trusted financial advisors who will provide critical guidance through challenging period ahead
• How to successfully engage and educate the family to preserve and enhance the family’s financial wealth and human capital over the generations

About Authors:

MARK HAYNES DANIELL is the founder and Chairman of the Raffles Family Wealth Trust, based in Singapore. He also chairs The Cuscaden Group, his family’s own private office, also based in Singapore. He is a former director of Bain & Company, one of the world’s leading strategy consulting firms, where he worked for more than two decades with some of the world’s wealthiest families and their businesses. Mr. Daniell has also served as director of Wasserstein Perella, a mergers and acquisitions advisory firm in London and Paris, and was the founder and chairman of Singapore’s national Private Wealth Management Initiative.

TOM McCULLOUGH is Chairman and CEO of Northwood Family Office LP, a Toronto-based multi-family office which serves the comprehensive financial needs of families of significant net worth. Northwood was founded in 2003 and has quickly risen to prominence as an international leader in its field. Mr. McCullough has spent thirty years in the wealth management/family office field and is also an adjunct professor of finance at the Rotman School of Management at the University of Toronto where he teaches “The Management of Private Wealth.”

Table of Contents

Setting Out a New Approach to Family Wealth Management (Pages: 1-22)

Arriving at a Point of Inflection in the History of Family Wealth (Pages: 23-44)

Addressing the Differences between Private and Institutional Investing (Pages: 45-56)

Reinforcing the Importance of a Disciplined Investment Process (Pages: 57-70)

Documenting Family Philosophy, Vision, and Values (Pages: 71-88)

Determining the Purpose of Wealth and Setting High-Level Financial Goals (Pages: 89-104)

Structuring Assets and Aligning Investments to Serve Multiple Purposes (Pages: 105-118)

Integrating the Family Business into Wealth Management Strategy (Pages: 119-132)

Rethinking Modern Portfolio Theory, Considering Goals-Based Wealth Management (Pages: 133-148)

Reviewing Different Approaches to Asset Allocation (Pages: 149-164)

Comprehensive Risk Management (Pages: 165-184)

The Elements of Long-Term Strategy (Pages: 185-198)

Investing for the Future: Mega-Themes and Principled Investment Management (Pages: 199-216)

Long-Term Strategy Document (Example) (Pages: 217-234)

Drafting the Annual Investment Policy Statement and Refining Investment Tactics (Pages: 235-248)

Rethinking the Role of Traditional Asset Classes (Pages: 249-266)

Assessing Alternative Assets and the Search for Recurring Alpha (Pages: 267-284)

Selecting Individual Investments and Investment Managers (Pages: 285-298)

Investment Policy Statement (Example) (Pages: 299-308)

Monitoring Performance against Internal Goals and External Benchmarks (Pages: 309-320)

“White Water Investing” and the Management of Wealth in Turbulent Times (Pages: 321-326)

Designing the Ecosystem and Selecting Advisors (Pages: 327-340)

The Role of the Family Office (Pages: 341-358)

Determining the Right Wealth Distribution Strategy (Pages: 359-374)

Preparing the Family for Successful Management and Transfer of Wealth (Pages: 375-392)

Pulling It All Together: The Successful Management and Transfer of Wealth Across Generations (Pages: 393-402)

Bibliography (Pages: 403-406)

List of Essay Writers (Pages: 407-408)

List of Figures and Tables (Pages: 409-410)

About the Authors (Pages: 411-414)

About the Raffles Family Wealth Trust (Pages: 415-418)

About Northwood Family Office (Pages: 419-422)