“Family wealth management is as much about family and its individual members as it is about finance and individual investments.”—from the Preface
The successful management of family wealth has always been a challenge, even in the best of times. And it has become even more difficult in this new world order where income and capital growth are hard to generate, where the old rules of the game no longer provide reliable guidelines, and the careful balance of both family and financial considerations is more important than ever.
Family Wealth Management provides a fully integrated and family-centric approach to wealth management, addressing the family’s philosophy of wealth and the development of its goals, its approach to structuring and allocating financial assets, and the importance of engaging and educating family members along the way.
It provides a practical review of the harsh lessons learned by many families over the past years and practical advice on how to avoid the failures and costs of outdated approaches to financial management.
Authors Mark Daniell and Tom McCullough also provide helpful direction on the integration of a family business into family wealth management plans, actionable insights on the differences between private and institutional investing, and practical advice on how to manage family wealth on a principled basis in turbulent times.
While there is no single playbook that will guarantee consistent, long-term investment success, the authors believe there are some basic common elements required for successful investing.
The seven imperatives outlined in this book serve as both a guide to the critical insights necessary for successful family investing, and also offer a step-by-step process to help families develop and implement their own unique investment strategies, and achieve their overall objectives. 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 investment tactics based on capital markets trends and any changes in a family’s economic situation
- How to monitor performance against both internal goals and external benchmarks
- How to select and manage an ecosystem of experienced, trusted financial advisors who will provide critical guidance through the challenging period ahead
- How to engage and educate the family to preserve and enhance the family’s financial wealth and human capital over generations
The pursuit of the long-term goals of family wealth preservation and growth requires family leaders to manage both family and finance successfully and to avoid the many traps and pitfalls along the way. This is a balancing act that requires the simultaneous mastery of both change and continuity in the constantly evolving world of family wealth management.
Comprehensive, practical, and easy to apply, this book will serve as an important reference guide for family members and their wealth managers in the current challenging environment—and for many years to come.
Praise for Family Wealth Management
“Investing with a long-term family perspective requires a deep understanding of both family and finance; Family Wealth Management addresses these two topics in a seamless fashion, providing a comprehensive reference and practical approach for families interested in preserving both lifestyle funds and legacy wealth through all types of investment environments.”
―H.S.H. Prince Max von und zu Liechtenstein, Chief Executive Officer, LGT Group
“Family Wealth Management provides a much-needed practical guide to the intersection of family and finance. The seven imperatives and the many practical examples, case studies, and checklists will make this book an important reference piece for every wealthy family and the advisors who serve them.”
―John Benevides, President, CTC Consulting, Harris myCFO, LLC
“Very well structured and comprehensive in its coverage, this impressive book captures many of the most valuable lessons learned by legacy families, both positive and negative. Those lessons, and the entire content of this book, can provide useful guidance for all family investors and their advisors.”
―Andreas Baer, Partner, Baer & Karrer
“Owning, managing, and nurturing significant wealth involves hard work, discipline, and engagement. This valuable guide puts the family at the core of the complex yet comprehensible web of decisions and disciplines needed to set a family’s own successful investment strategies.”
―Alex Scott, Executive Chairman, SandAire
“Thoughtful, expert, and practical . . . highly recommended.”
―Iu-Jin Ong, Founder, One Global Asia Family Office and Deauville Private Office
“Finally! A book that puts family investors back in the driver’s seat where they belong. This excellent book provides fresh, sensible thinking and a clear forward road map for wealthy families. This family-centric approach is very positive and long overdue.”
―Dirk Jungé, Chairman, Pitcairn
“In Family Wealth Management, Mark Daniell and Tom McCullough demonstrate that managing for sustainable and productive family wealth is all about integrating across family and finance. Not only do they make that critical point, they lay out a practical and comprehensive guide for doing just that. It should be required reading for both family leaders and their advisors.”
―Roger Martin, Dean, Rotman School of Management, University of Toronto
“Daniell and McCullough skillfully weave theory and practice to demonstrate how successful multigenerational wealth transfer starts with a family’s vision and values.”
―Sara Hamilton, CEO, Family Office Exchange
About the Author
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.”
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