The hidden “cost” of accepting low rates of interest on cash deposits has been a consequence of the fallout from the credit crunch for those with significant wealth.
As banks seek to repair their balance sheets, the rates of interest paid to depositors have fallen significantly.
People who know a lot more about publishing than I do insist that if you can manage to get the Royal Family into your book then it has a discernible effect on sales. This, I am pleased to say, I managed to do with The Age of Instability, (Profile Books, 2010) my new book. The Queen is featured, for asking a question many will be familiar with: “If these things were so large, how come everyone missed them?” The question, asked on a visit to the London School of Economics in November 2008, was, of course, the killer one.
India is a virgin market for experienced professionals focused on achieving long-term goals. However, like all Asian markets, it requires patience and commitment to the client
relationship to get a taste of success. In the borderless world of the ultra wealthy the
cost of ignoring this market will be completely unaffordable.
Corporate activity in emerging markets is coming of age and will become more widespread over the coming years – making this market one which family offices will need to consider and one which offers very substantial returns for early investors.
Environmental, social and governance (ESG) issues are becoming more relevant as
important criteria for investors, in spite and because of, the ongoing financial market turmoil. Sustainable and Responsible Investment (SRI) is growing dramatically and becoming more refined as an overall approach that meets the diverse interests of
European investors.
Brazil, having weathered the global economic downturn better than many countries and performed robustly in 2009, offers substantial promise for 2010 amid the expectations for strong growth led by domestic demand.
The finite nature of natural resources, the increasing costs associated with extracting these and the difficulty in identifying large high-grade deposits are all factors which fuel
upward-pricing expectations surrounding commodities. This is further fuelled by the notion of ‘insatiable’ demand for resources from China and India.
They say blood is thicker than water, but money, and its potential for strife, may be thicker than both. While many conflicts in family business have their roots in clashes of personality, strategy and leadership, disagreements over financial shares are all too frequent.
Advising new philanthropists will require the family office manager to develop knowledge and proficiencies in the field of philanthropy, tax planning and gift administration.
In the aftermath of corporate financial scandals observed in the past couple of years one can detect a gradual loss of trust with economic agents, as well as a gloomy suspicion
concerning their compliance with corporate governance and ethics in business.
Family offices have great affinity for private equity since many families have accumulated their wealth through business or entrepreneurial ventures. In the largest recent private equity survey of 50 family offices across Europe, commissioned by LPEQ in association with Scorpio Partnership, 57% of family offices anticipate increasing their allocation to private equity over the next year, while 33% expect to maintain their current allocation to private equity. Most respondents in the survey expressed confidence that private equity remains a quality long-term investment and they see the recent recessionary conditions as an opportunity to acquire assets at relatively cheap or distressed prices.
The hedge fund industry has not only survived the recent crisis but investors are flowing back. As one of the world’s most Darwinian industries this should come as no great surprise.
