Advising Ultra–Affluent Clients and Family Offices

Praise for Advising Ultra–Affluent Clients and Family Offices
"Michael Pompian′s book Advising Ultra–Affluent Clients and Family Offices is noteworthy for its comprehensiveness. Michael combines ′the big picture′ with detailed, prescriptive, and actionable strategies; advisers to wealthy families will receive a detailed understanding of how a quickly evolving landscape impacts their business and its implications for their clients."
–John Benevides, President, Family Office Exchange
"This book should be on the reading list of anyone who wants to be a full–fledged professional in our industry. Michael Pompian has wisely chosen to focus on practical descriptions and recommendations; in my view this is a great plus, as we need more educational resources in this field. Congratulations. The book is well worth reading."
–Jean L.P. Brunel, CFA, Managing Principal, Brunel Associates, LLC
"Ultra–affluent clients want information and advice integrated and in real time. So planning, investing, and measuring become a continuous process. This is very hard to do. Michael Pompian articulates a clear and insightful road map which outlines the process, components, and human factors needed to create a sustainable world–class wealth management program–both advisers and wealth owners would be wise to follow Michael′s lead."
–Stephen Martiros, founder, Summitas (www.summitas.com) Managing Partner, CCC Alliance (www.cccalliance.com)
"As wealthy families become more globalized, their needs for wealth preservation and growth have become more complex and sophisticated in times of financial uncertainty. Michael Pompian has crafted an insightful and comprehensive guide for enhancing your own capabilities and awareness on how to advise the most demanding clients. A must–read for all financial advisers!"
–Dr. Kurt Moosmann, MBA TEP CFP; cofounder and Managing Partner of Dara Capital Ltd., Zurich, Switzerland
"Without incorporating the critical components of effective family governance and the awareness of generational and behavioral issues, families of wealth and their advisers are operating blind in their wealth management pursuits. Michael Pompian′s book gives both advisers and family members essential insights for discovering the risk factors they must consider in today′s environment and in finding the resources required to provide consummate solutions."
–Lisa Gray, graymatter Strategies LLC, author of The New Family Office and Generational Wealth Management
"Advising Ultra–Affluent Clients and Family Offices is a valuable ′handbook′ that covers all the major areas of wealth management. While Mr. Pompian has written the book primarily for wealth advisers, Advising Ultra–Affluent Clients and Family Offices will provide invaluable insights to ultra–affluent individuals and families, particularly those who are thinking about setting up a family office or becoming clients of a multifamily office."
–Paul R. Perez, CFA, Managing Director, Family Advisory Services, Northern Trust
"I like the way Michael Pompian presents this material. It covers the waterfront with a clear, concise, and compelling treatment. This book will prove useful for family members and family office executives. I especially admire the multigenerational orientation."
–Bradley G. Fisher, CEO, Springcreek Advisors LLC (Multi–Family Office), Corte Madera, California

Spis treści:
Foreword.
Preface.
Acknowledgments.
Part One Introduction to Advising Ultra–Affluent Clients.
Chapter 1 Who Are the Ultra–Affluent?
Defining the Ultra–Affluent.
Quantifying Ultra–Affluence Among Total Global Wealth.
Looking to the Future.
A World of Opportunities for Advisors.
Chapter 2 Understanding the Mindset of the Ultra&# 8211;Affluent Client.
Why Advising the Ultra–Affluent Is Different.
What Ultra–Affluent Clients Value in an Adviser.
Building Relationships by Asking Questions and Listening to the Answers.
Matching Client with Advisor.
Consultant Questionnaire.
Conclusion.
Chapter 3 Wealth Attitudes, Aspirations, and Investor Behavior of Ultra–Affluent Clients.
Family Aspirations.
Wealth Attitudes of Ultra–Affluent Clients 
Where Psychology Meets Finance.
Investor Biases.
Conclusion.
Chapter 4 Noninvestment Best Practices.
The Challenges Associated with Wealth.
Guidelines for Sustaining Multigenerational Wealth.
Conclusion.
Part Two Investment Strategies for Ultra–Affluent Clients and Family Offices.
Chapter 5 Practices of the Best Investment Organizations.
Differences between Endowments and Private Investors.
Investment Committees.
Investment Policy Statements.
Key Considerations for Portfolio Oversight.
Conclusion.
Chapter 6 Asset Allocation Considerations for Ultra–Affluent Clients and Family Offices.
What Is Asset Allocation?
The Importance of Assumptions in the Asset Allocation Selection Process.
The Importance of Asset Allocation.
Considerations in Asset Allocation for Individual Investors.
Chapter 7 Domestic and International Equity.
Introduction to U.S. and International Equity Securities.
The Five–Step Equity Strategy Process.
Chapter 8 Domestic and International Bonds.
Introduction to Bonds.
Descriptions of Bond Asset Classes.
Chapter 9 Private Equity.
What Is Private Equity and How Does It Work?
Three Primary Types of Private Equity Investments.
Creating a Customized Private Equity Program.
Chapter 10 Hedge Funds.
What Is a Hedge Fund?
Hedge Fund Investing by UACs and Family Offices.
A History of Hedge Funds.
The Legal Environ ment of Hedge Funds.
Hedge Fund Strategies.
Manager Selection.
Chapter 11 Real Assets.
The Portfolio Benefits of Real Assets.
Real Estate: A Long–Term Inflation Hedge.
Natural Resources.
Part Three Multigenerational Considerations for Ultra–Affluent Clients and Family Offices.
Chapter 12 Selecting an Adviser.
Trust: The Key Ingredient.
How UACs Select an Advisor.
Questions for Prospective Advisers.
Conclusion.
Chapter 13 Selecting a Custodian and Investment Vehicle Structure.
Custodial Services.
Investment Vehicle Structure.
Conclusion.
Chapter 14 Considerations for Creating a Family Office.
What Is a Family Office?
Challenges of Wealth.
Practical Reasons to Create a Family Office.
Challenges of Running a Family Office.
Services Provided by a Family Office.
Administrative Considerations for Establishing a Family Office.
Considerations for Establishing a Private Trust Company.
Conclusion.
Chapter 15 Wealth Transfer Planning.
Estate Planning Basics.
Conclusion.
Part Four Special Topics for Ultra–Affluent Clients and Family Offices.
Chapter 16 Concentrated Equity Risk Management.
What Constitutes a Concentrated Equity Position?
Concentrated Stock Risk Minimization Strategies.
Conclusion.
Chapter 17 Family Governance.
Generational Division.
Family Governance: An Essential Part of Successful Wealth Transfer.
The Incredible Family.
Policies.
Stages of Development.
Conclusion.
Chapter 18 Risk Management and Asset Protection.
Family Office Risk Management.
Individual Family Member Risk Management.
Legal Asset Protection.
Conclusion.
Chapter 19 Philanthropy.
Philanthropic Strategy Development through Asking Questions.
Mission Statement.
Implementation of Philanthropic Strategy.
Best Practices of Giving Large Gifts to Colleges an