Every Penny Counts - Preserving Wealth for Future Generations

In his opening keynote presentation, Charles Lowenhaupt, the Chief Executive Officer at Lowenhaupt Global Advisors, addressed the need for the adoption of the ‘Global Standards for Private Wealth Management’ by family offices, to ensure that the management of significant wealth remains constant and stable even in perilous times or under dangerous conditions. In the aftermath of a crisis that was plagued by instability and fraud, it has become essential for family offices and wealth managers to take this step in order to regain the trust and confidence of private wealth holders. “The Standards are what every family needs in this era of distrust,” Lowenhaupt said. 

The first question that family offices should ask high net worth individuals is, ‘What do you want to accomplish with your money?’ and align all strategies accordingly. Families are not intuitively process orientated, Lowenhaupt explained, but processes are needed for functionality. The Principles need to get into the family offices’ DNA so that each individual knows what to expect from the other. Uniform, objective standards make sense for the private wealth management industry and the benefit of wealth holders, Lowenhaupt remarked.

Dr iur Kurt Moosmann, Co-Founder and Managing Partner of Dara Capital discussed governance frameworks in his presentation, “Achieving Sustainable Wealth Preservation by Adopting an Effective Governance Framework”. The audience was captivated by his thorough analysis of how internal and external risks can be managed, in order to preserve and grow wealth for future generations. Death, divorce, inadequate education or intra-family conflict are just a few common circumstances which could pose as a serious threat to wealth. Therefore, it is important to consider a comprehensive estate plan and family governance, which includes but is not limited to diversifying and monetising concentrated holdings, managing liquidity, choice of manager and leadership succession, to guard against potential risks and to preserve wealth over generations.

marcus evans was also proud to have Jean Brunel, Managing Partner of Brunel Associates, as well as the editor of ‘Journal of Wealth Management’ and author of ‘Integrated Wealth Management’, speaking at the Elite Summit 2010 to share his insights and outlook on the industry. Brunel advised private wealth management executives to remember which side of the investment table they belong to. “They are the ones with the money, not us!” Brunel said, referring to wealth holder clients. “We need to make the effort to speak their language. Our job is to bring our expertise to them!”

There needs to be a sharper focus on tax efficiency, more use of goal-based allocations, a broader use of alternative strategies, dynamic asset allocation and optimization of alternative strategies. “You cannot escape the responsibility that comes with the luxury of wealth,” Brunel concluded.

The three-day Elite Summit 2010, which took place in May at the Fairmont Le Montreux Palace in Montreux, Switzerland, also featured presentations by Jeffrey Lewis, President of Heinz Family Philanthropies on the entrepreneurial philanthropy model the foundation is pursuing and Caroline Lang, Managing Director of Sotheby’s Geneva and Senior Director at Sotheby’s Europe talked about the lure of passion-investing and its benefits as a form of protection to family wealth.

Attendees were also inspired by comments made by Professor Dr Wolfgang Gerke, President of the Bavarian Finance Centre. “We have to accept that totally efficient markets do not exist,” Gerke highlighted. “I am convinced that family offices in the future will have to manage more bubbles and crashes. We have learnt so many lessons from history and can prevent many things.”

Only a few family offices compile consolidated performance reports, thus investment activities are rarely reconfigured to account for the results yielded by investment controlling. Investment controlling is a core responsibility of family offices, and Gerke recommends a more active approach to managing investments and more dynamic policies.

As economies gradually pick up again, it will be interesting to see what the wealth management industry has learnt from past difficulties and the steps it takes to ensure future challenges and goals are met.

To meet, network, gain cutting-edge insight and share strategies with senior-level wealth management industry executives, please visit the summit website and find out more about the upcoming marcus evans Elite Summit 2010, taking place 15 - 17 November 2010.

Contact:
Sarin Kouyoumdjian-Gurunlian
Press Manager
marcus evans, Summits Division
Tel: + 357 22 849 313
Email: press@marcusevanscy.com

About the Elite Summit 2010

This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 15 - 17 November 2010. Offering much more than any conference, seminar or trade show, this exclusive meeting will bring together esteemed wealth management industry thought leaders and solution providers to a highly focused and interactive networking event. The summit includes presentations on establishing an effective governance framework, tax optimisation strategies, managing risks and maximising investment returns.

For more information please send an email to info@marcusevanscy.com or visit the event website at www.elitesummit.com

Please note that the summit is a closed business event and the number of participants strictly limited.

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit www.marcusevans.com

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