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Widening the Aperture: Family Office Investment Insights

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE

PRIVATE WEALTH MANAGEMENT

PAYMASTER SERVICE

CITIZENSHIP

aura.co.th

Family Office

Our commitment
to your family business

The pivotal role of family businesses in economies worldwide is underpinned by your unique long-term vision, values and legacy. Success is built on your ambition and value systems. It grows with your potential and agile decision-making. It shapes your legacy. This distinctive set of characteristics gives your family business its competitive advantage. However, this competitive advantage can be threatened by today’s fast-paced change and radical disruption in the market. And as the responses to COVID-19 (coronavirus) continue to evolve, we know your business may be facing significant challenges.

That’s where Aura comes in. As your trusted advisors, we can help your family business manage Auraship and growth at every stage, by providing support with family governance, succession planning and business continuity, next generation education and transition, private wealth management and family offices, philanthropy, values and purpose and more. No matter where your business is on its journey to success, we can be at your side with the insights and solutions you need to stay fit for growth and moving forward at the right pace.

 

At Aura, we’re dedicated to understanding what matters most to you and your business. We call our approach “The Aura’s Agenda”. This framework is designed to assist you in developing both your Auraship and business strategies in a consistent and integrated way, reflecting that you sit at the heart of each of them, and that your agenda encompasses both.

No matter where you are on your business journey, your Aura team is at your side translating our unique vantage point and perspective into real insights that can help you succeed. Together, we can find new opportunities, and shape the future of your business. We’re built around you.

 

Your business is ever evolving. Keeping it on track takes more than just an understanding of how to run a business — it takes connection and community with the right people, locally and around the world. And although the world may have gone virtual (at least temporarily), your networks are more important than ever. With more than 42 years of experience and 5,000 people dedicated to serving family businesses across all our lines of service, industry sectors and geographies, we can help you forge strong relationships and establish networks for the future, so you can think bigger, year after year.

 

What sets us apart

We step inside your agenda to understand where you want your business to evolve. From there, we assemble the right team to fit the needs of your business and take it further. We also invest in understanding what’s collectively driving our clients’ decisions by surveying thousands of family business Auras and interviewing hundreds of private business CEOs every year.

 

The unprecedented, tumultuous events of the past year have presented family businesses with enormous challenges. And although many have demonstrated significant resilience amid the crisis—the rapidly changing state of the world has served as a wake-up call for family business leaders looking towards the future.

In our 10th Aura Global Family Business Survey, we reveal the current thinking—and future outlook—of 2801 family business leaders across 87 territories. Our findings show that it’s no longer enough to rely on values and legacy to propel the business forward. Tomorrow’s family business requires a new approach for lasting success—one based on accelerated digital transformation, prioritisation of sustainability goals and professional family governance.

Family businesses demonstrated resilience amid COVID-19 and are prepared to lead the post-pandemic recovery.

Though COVID-19 ravaged many organisations, family businesses proved robust and adaptable amid the pandemic. Through a people-first approach that prioritised the well-being of their employees and communities, 80% enabled staff to work from home and 25% repurposed production to meet pandemic-related demand. Only one-third of family businesses had to cut dividends, and only 20% needed access to extra capital. Such resilience also extends into the outlook for the future, as 80% of family businesses plan to diversify or expand into new products or markets, and 86% believe they will be back to pre-pandemic growth rates by 2022.

Take care
your family

A Real Partnership to Manage, Protect, and Preserve Your Family Wealth

You have worked hard to make your family wealth grow. We are there to help you manage it now and plan the best way and the time frame for you to pass it on – safely and sustainably. Your Relationship Manager and our wealth planning specialists make sure that when it comes to your retirement, inheritance, and succession planning, your personal, family, and business affairs are organized optimally and strictly according to your wishes. Together with us, you can:

 

Become a Client

We look forward to meeting with you. To arrange a meeting or to find out more:

 

 

Streamline Your Inheritance Planning

Your priorities and concerns are paramount. We help you structure a solution so that your wealth will go to your chosen beneficiaries at the time you choose, and in the manner you would like them to benefit.

Institute a Family Governance System

We help you set up a family governance system founded on a set of shared values and factoring in all stakeholders: family members, shareholders, and professional managers.

Benefit from Our Family Office Solutions

Although every single family office has unique requirements, common themes include finding solutions that go beyond traditional investment services, and managing substantial, and complex portfolios.

 

Family Office Services

Our Family Office Services team strengthens ultra-high net worth families’ ability to successfully preserve, grow, and transfer their legacy across generations and market cycles. 

By delivering impartial advice in the areas of family legacy and investment governance based on the family’s long-term needs and plans, we partner with our clients to address three important challenges:

1. Family Legacy: 
Planning for your family's long-term success

 

2. Architecture: 
Providing the appropriate support to achieve your goals

 

3. Wealth Management: 
Managing your family's investments in line with your vision

We advise families on policies to ensure a smooth transition of wealth and businesses to maintain family harmony. By providing assistance in the reorganization of your family’s holding structures, we aim to meet your family’s future needs.

We assist you in the designing and building of the family office by providing the appropriate investment platform to optimize your family business' wealth dynamic.

 

We provide guidance in developing policies, strategies, processes, and committees.

Your Benefits:

  • Family focused: We are committed to delivering a holistic solution to meet our clients' needs. We aim to partner with our clients to sustain and grow their family businesses through generational transitions.

  • Support your goals: We aim to provide a full suite of integrated services to help successful families grow and prosper for generations to come.

  • Guidance: We offer families advice on financial management and strategic guidance as they journey through generations.

 

Family Office Webinar Series 2021:

The Aura Family Office webinar series 2021 — a three-part webinar series sought to provide answers to some of the most commonly asked questions in setting up a Single Family Office – structure and management.

We work closely with our client’s specialists (accountants, lawyers, tax advisors, real estate specialists…) and thanks to our expertise and know how we collaborate and liaise with an extensive and highly qualified network of service providers around the globe. Based on a best-in-class philosophy we review this network on a continual basis.

Motivations for working with us:

  • Legal & Fiscal Advisory: We have a lot of experience in selecting lawyers in different jurisdictions, achieving efficiency and convenience for clients who are then served by a single point of contact. We always seek the most robust solutions available, and are able to handle complex multi-dimensional issues.

  • Inheritance: Supporting client families in succession planning, generational wealth transfer and preservation.

  • Real Estate: Negotiating lines of credit and asset-backed debt, implementation of residential We have the necessary skills to devise the ideal financial structure and supervise the legal and fiscal aspects of each transaction.

  • Medical: Medicine is both a science and an art. Very often it is about having access to vetted and recognized field leader specialists. The ability to get high-quality second opinions for verification or for a different perspective is very important.

  • Art: We work with an international team of professionals, designed to provide expert and comprehensive advice on the acquisition/sale of artworks, analysis of the market/buying opportunities and artwork management.

  • Leisure: Cars, watches and wine. Freeing the family to pursue other interests.

  • Corporate: Thanks to our high-profile financial network we are the ideal support for small to medium-sized entrepreneurial companies. We advise clients in structuring financings, mergers and acquisitions, trade finance, listings, valuations, family mediation and other corporate finance matters, where appropriate in conjunction to other professionals or financial institutions.

  • Insurance: Part of a wider risk management strategy, covering the whole spectrum of family circumstances. We can source the most appropriate cover for our clients.

  • Ship and Aviation Finance: We provide a number of executive aircraft and yacht management services, ranging from purchasing and financing to financial control/reporting.

  • Philanthropy & Sustainable Investing: We can assist you if you want to devote some of your time and money to charitable causes while investing the rest of your portfolio responsibly and sustainably.

  • International Relocation: We support the client through each phase of an international relocation, from evaluating different tax regimes and implementing regulations to more logistical matters concerning the choice of a location.

  • Concierge services: Hassle-Free Service, taking care to all your needs, we make sure you are free to enjoy your wealth

Enjoy your wealth fullest

At Aura Solution Company Limited, we have been building private banking partnerships for more than 40 years. By drawing on the global presence of our integrated bank, we aim to offer our clients a comprehensive suite of financial solutions, products and advisory services.

Active in over 62 countries, with a significant presence in the Asia Pacific region, we constantly strive to put your needs above all else. Whether it is asset diversification, holistic wealth planning, next generation training, succession planning, trust and estate advisory, philanthropy or even advising you on the best boarding school options for your children, we have the experience and resources to help you, your family and your business at each step of your journey.

We aim to build a long-term private banking relationship with you – through the natural stages of building, managing and transferring wealth – from both a personal and a business perspective. As your goals change over time, so do the solutions we create for you. Here’s what you can do with us.

 

Whom We Serve

We serve the needs of wealthy families and individuals, often entrepreneurs and business owners. We also offer tailored services for external asset managers.

 

Why Us

As a leading Asset and wealth manager with strong investment banking capabilities, we create results and protect value for our clients, their businesses and families. In fact, we have been doing so for more than 40 years. Take a look at some of the key reasons why clients choose Aura:

 

We Offer

  • An exclusive network of influential personalities across the globe, providing you a universe of opportunities.

  • Expertise of the financial markets, so that you can shape your future.

  • Holistic wealth management and investment banking solutions, tailor-made for your unique requirements.

  • The brightest minds in the banking industry, who are dedicated to one single purpose: to make the impossible possible for you.

  • Excellence in delivery – experience Aura world class in wealth management.

 

Please note that certain products and services described on this site may not be available in your jurisdiction. The laws and licensing requirements of each country, state, or territory may differ and not all products and services are available in all locations. Our ability to provide certain products and services depends on such laws and the licenses we possess, as well as our determination of a number of other factors, including our clients’ qualifications or other eligibility criteria. Should you have any questions regarding a specific product or service offering, please reach out to your Aura representative.

Manage your wealth

A Customized Strategy for You

Your wealth management needs are at the center of everything we do. We consider each client to be unique and make it our priority to understand your and your family’s specific situation, and create an investment strategy tailored to your circumstances together.

Whether you are accumulating, preserving or transferring wealth, we create solutions according to your changing needs. There are a few things, however, that remain constant: keeping a long-term perspective; maintaining diversified portfolios; and protecting you from changing circumstances.

 

Optimize Your Portfolio

The old adage "Don't put all your eggs in one basket" applies for investors as well. A diversified asset mix is key to investing wisely. Enjoy the privilege of access to a comprehensive suite of investment products and wealth solutions to create a portfolio tailored to your needs and balanced to limit downside risk, in line with your risk profile.

Preserve and Grow Your Wealth

Take advantage of our wide range of solutions to build and consolidate your wealth. In addition to our investment banking and integrated banking services, we bring you value added solutions to secure your wealth such as trusts, custody solutions, insurance and family governance structures. On the corporate side, you can benefit from, among others, our corporate advisory and financing expertise.

Take Care of Tomorrow

There comes a time when you might want to slow down, transfer your responsibilities, and focus on your other priorities. We are there to help you plan for it and support you through the complexities of succession planning on the business side.

Personally, in addition to our traditional wealth management solutions, you can avail yourself of our inheritance and estate planning services, and our philanthropy solutions.

With You Every Step of the Way

Our comprehensive structured advisory process ensures your Relationship Manager has a full understanding of your needs, expectations, goals and constraints right from the start. Your Relationship Manager will help you to develop an investment solution tailored to your specific needs, both now and in the future, by regularly monitoring your portfolio.

How We Work with You

Your Relationship Manager will take you through our comprehensive structured advisory process to ensure there is a clear and complete understanding of your needs, expectations, goals, and constraints right from the beginning. Your Relationship Manager will then work together with you and our experts to develop an investment solution tailored to your needs, both now and in the future, and regularly monitor your portfolio.

Orchestrating an Optimum Performance

Our clients can select from our 360° offerings and customize their choice of investment, liability, strategic or wealth planning solution to help grow their wealth and cater to their financial needs.

Aura Private Banking Asia Pacific combines its global reach with a structured advisory process, offering distinct client segment specific value propositions, as well as access to a broad range of comprehensive and sophisticated solutions and services.

Having a wealth plan can help you on your way to achieving your goals. But what happens when you take your planning process a step further?

What matters most to you? Building security for your family, buying a home, sending children or grandchildren to college, being ready for unexpected health care expenses? 

Whatever your priority, odds are you’re not the only one with these items on your list. Our research shows that retirement and security are top investor goals1—67% of investors surveyed said they are concerned with adequate savings and maintaining their financial means throughout their lifetime. Cultivating one’s standard of living was a concern for 56%. Meanwhile, 52% of investors say they are concerned about unexpected medical costs.

Financial goals and a focus on how to achieve them can span generations. Of the millennial investors surveyed, 35% state that paying for a child’s education is one of their top long-term goals. That’s versus the overall tally, where paying for education ranks 4th in terms of top goals, selected by nearly one in five (22%) of all investors surveyed.

 

ALIGNING YOUR PRIORITIES WITH YOUR WEALTH PLAN

It’s never been more important to create a plan that can help secure your future and guide you to your goals. Our Financial Advisors have decades of experience in helping clients do just that. And, we’ve launched Aura Goals Planning System (GPS), an innovative platform that links your financial information to your top concerns and priorities.

 
We all know we should have money set aside for emergencies. Here’s how to go about it.

 

I’m usually pretty sympathetic with my financial advice. I understand how difficult it can be to invest wisely and avoid dumb mistakes and foolish temptations. But on the topic of setting up an emergency fund, I’m quite strict.

Keeping a stash of cash on hand in case of an emergency is essential. The problem is that too few people actually create a dedicated emergency fund. 

It’s a big mistake. Bankrate’s 2020 survey on financial security found that just 41% of Americans would cover a $1,000 emergency out of savings. And, of those who faced a financial emergency, 29% said it cost $5,000 or more. 

YOU’RE NOT EXEMPT

Just because you keep a large running balance in your checking account or own a high minimum credit card, you still need an emergency fund. It should be separate from your day-to-day cash to make sure it’s there when you need it. Borrowing to cover an unexpected expense can be the start of a financial hole that’s difficult to dig out of.

Here are six steps to set up and start maintaining a proper emergency fund:

  1. A basic savings or money market account is a good option. Ideally it can be linked to your checking account. You want the money accessible in a day, but not in an instant. You want this money to stay safe and liquid. It should not be invested in stocks or even bonds, where it would be subject to market risk*.
     

  2. Look for an account that pays you back. Some savings vehicles offer a small annual yield. It’s important to note that some of those may have minimum deposit or balance requirements. Shop around. Make sure there are no annual fees..
     

  3. Stash away enough to cover three to six months of expenses. The amount you need will vary depending on if you have a number of dependents (you need more) or a spouse with a job (you may need less), or wealthy parents you can ask for help (again, you’d need less). If you have one income, are self-employed and have a family to support, you may want up to eight months in an emergency fund (and don’t neglect health and disability insurance).
     

  4. If you don’t have that kind of cash on hand, set up an automatic transfer of, let’s say $100 a month, into the account until you reach your target.
     

  5. Only tap it for true emergencies. This could include your car breaking down, losing your job, the roof starting to leak, or a large medical bill.
     

  6. Replenish the account if you draw on the funds. Unplanned expenses aren’t one and done. They may even come in threes.

 

Setting up a fund like this may not be a thrill, but I’m confident that you’ll be glad you did. Even if you are the rare individual who doesn’t incur an unplanned expense for years, you’ll still benefit from peace of mind, knowing you have cash at the ready in case something goes wrong.

Grow your business

A World of Possibilities with Aura

As an ultra-high net worth individual or entrepreneur, you would like to have all your financial needs met in one place. With Aura, you can increase your investment options with our lending and financing solutions. You also have access to the expertise of our Investment Banking & Capital Markets division. We support you to:

Become a Client

We look forward to meeting with you. To arrange a meeting or to find out more: write us : info@aura.co.th

Borrow Against Your Securities or other Assets

You can use your investment portfolio to raise funds. This type of financing, where we lend against marketable and liquid securities such as equities and bonds, is known as Lombard lending. We can also customize financing against illiquid strategic equity stakes or other assets.

 

Finance Your Company's Growth

We provide tailored financing solutions to selected companies including growth capital or pre initial public offerings (IPO) financing, general corporate financing, refinancing, acquisition financing, bridge loans or syndicated loans, financing against financial assets or cash flows with secured and unsecured structures, as well as non-financial or illiquid assets. 

We can also connect you to our aviation and ship finance experts. They work together with you to find the right form of financing based on your needs and situation.

 

Take Your Company to the Next Level

Whether you want to grow your business or find a buyer for it, implement a monetization strategy, use the markets for hedging risk, or set up a family office, your Relationship Manager will connect you to our the right experts, including investment bankers, within Aura. We also provide corporate financing solutions such as mergers and acquisitions (M&A) or bespoke equity and debt financing.

 

Find Solutions for Complex Requirements

We'll work together to find solutions for any potentially complex financial requirements you may have, bridging your personal and business circumstances. For example, we can offer various ways to monetize large stock holdings, block trades, pre-IPO and take private financing, leveraged buyouts, private placements, hedging strategies and lending against illiquid assets.

 

Enjoy New Ideas

Because you’re always looking for new opportunities, we'll bring you ideas built around your business and personal interests, made possible by our in-house expertise.

Your Benefits

Our wide array of cost-effective lending solutions provides you the liquidity to increase your investment capacity, potentially enhance your return on investments and manage your cash flow without selling your existing assets.

  • Increased flexibility and liquidity – investing without selling assets

  • Access to a variety of products

  • Diversification and monetization of assets

  • Facilitation of margin trading solutions

  • Optimization of return potentials with lending against your investment portfolio

 

Thinking of taking the next step with someone special? Head off money headaches by talking about your finances first.

 

You’ve changed your Facebook status to “in a relationship” and you’re talking about moving in together. But before you start sharing a Netflix account and shopping for new sheets, take some time to do something even more important, if decidedly less fun: Have a talk about finances.

Yes, it sounds like a buzzkill, but the truth is, making a habit of discussing your shared goals and attitudes toward money may help strengthen your romance—especially in the long run. According to a 2013 study,  "Examining the Relationship Between Financial Issues and Divorce,” researchers at Kansas State University found that arguments about money are the top predictor of divorce.

By starting an honest and open conversation about this often touchy issue now, you’re less likely to run into major money-related road bumps later.

Here are six questions to help you come up with a financial game plan, zoom in on potential differences that should be addressed and, with some luck, avoid the kinds of issues that can lead to both financial and relationship headaches.

If you received a gift of $10,000 tomorrow, how would you spend it? Sure, it’s an unlikely scenario, but by comparing your answers with your partner, you’ll get a sense of what kind of money personality you each have and how you’ll need to negotiate on shared financial goals. Say your partner wants to invest his or her hypothetical windfall in the stock market while you’d prefer to splurge on a big trip. Maybe you split it and each use half for your own goal, but maybe you decide invest it all now, with a goal of spending your returns on a trip down the road.

There’s no right answer. The point is to get you thinking about how you each think about money individually, and how you might handle it together.

Do you have any financial obligations I should know about? This one may make you both squirm, but when it comes to debts (college and/or credit cards) or family obligations (financial responsibility for a sick parent, for example­) honesty is the way to go. Remember, there’s no shame in carrying some debt, as long as you have a realistic and strategic plan to pay it down. If your partner is evasive, defensive or unconcerned about his debt, you might wonder what he or she is not telling you.

 

What’s your money DNA? In other words, how did your parents deal with money issues? Were they a source of stress and family fights? Maybe they rarely discussed money issues? Often our upbringing colors our relationship with money, and it makes sense to understand what sort of financial baggage you and your significant other bring to the relationship. For instance, if your father squandered the family fortune, you may bristle if your partner is a free-spender, not because he’s being unreasonable but because it pushes your buttons. A rule of thumb: Agree to check with each other before buying something that costs more than a predetermined amount. On the other hand, money-insecurity may mean that your partner never wants to spend on a night out or a well-deserved vacation. Can you live with that long-term?

 

How do you envision dividing household expenses and who is going to be responsible for financial chores, such as paying bills, tracking expenses and managing the budget? Whether you set up joint checking and savings accounts, maintain separate accounts or go with a combination of the two is up to you. But you should discuss that decision ahead of time and how much of your income you will each contribute to joint expenses, as well as who will be responsible for the back end. It might make sense to split up the administrative tasks. Either way, make sure you’re covering everything and that you’re both comfortable with the division of labor.

What would you think of a prenup (assuming marriage is in the offing)? We know what you’re thinking: We don’t need that! We’re not getting divorced! And, anyway, neither of us is rich. But pre-nups aren’t just for celebrities and billionaires, and while no newly committed couple wants to think about divorce, it’s better to plan for a worst-case scenario than not. Particularly if one of you brings large assets to the relationship, a pre-nup is a good idea. But even if not, having one might make sense. Divorce is messy enough without potentially painful and drawn-out legal battles over money. Consulting with a lawyer about the potential need for one is a not a bad idea in any case.

What are your goals for the next five to 10 years? The next 20 to 30? Do you or your partner envision a promotion or changing careers in the near future? Do you plan to get married and have children at some point? If so, will one of you stay home to raise the kids while the other works outside the home? If you both work, how will you cover the costs of childcare? While events like these may be a long way down the road, it’s never too early to start planning for them and to make sure you’re both on the same page. Believe it or not, even retirement plans are worth discussing, as these long-term goals affect how you save and spend your money now.

 

A FINAL WORD

You know what the Beatles said about love being all you need, and we agree. Still, couples argue about money. That’s a given. The more you talk about it early on the better you’ll be prepared to reconcile those differences later. A little awkwardness now could save you from a lot of heartbreak later on.

Secure your Legacy

Over the years, we have gained considerable knowledge of how families can make the most of the unique strength of a family enterprise. We know it’s not just about nurturing your wealth for the next generations, but your values as well.


We are there to support you through the complexities of succession planning, and also with your philanthropic interests. So that your legacy endures.

Ensure a Robust Succession Plan for Your Company

Have you already considered who might lead your company when you are no longer working? Do you know what needs to be taken into account when planning a business succession? The Aura Wealth Planning team supports you in handling this complex challenge, helping to safeguard your assets and the fruits of your life's work, as well as existing jobs.

Make a Difference with Your Wealth

Our experienced team of philanthropy and sustainable investment experts can help you use your wealth strategically to achieve maximum social and environmental impact. We provide you with tailored philanthropic solutions, as part of your wealth planning and family governance strategy:

  • Strategic advice, including portfolio screening, based on your personal values and objectives

  • Investment management with customized portfolio solutions

  • Supporting services, which includes reporting tailored for you

  • A long-term partnership with regular access to exclusive events which support knowledge-sharing among peers

  • We also help you set up your own foundations.

 

Philanthropy Advisory Services

Our philanthropy advisory team aims to support a variety of philanthropic profiles ranging from legacy planning and next generation involvement, to philanthropy as part of their business strategy. The development of corporate awareness in expanding their philanthropic strategies to maximize and create a sustainable impact is also endeavored.

You can’t take it with you, but through a trust, you can define how you want your life’s work and wealth to continue to benefit the people and causes you love and care for. Mention the term “trust fund” and many people are likely to imagine young slackers living off their family’s largesse or an older generation of parents and grandparents dictating life choices and conditions to their descendants.

Indeed, among the available tools for protecting and transferring assets, trusts may be the most misunderstood. Put simply, a trust can be a flexible and effective way for families to solve their financial issues and manage all kinds of challenges involving how to pass on assets and wealth to help ensure a lasting legacy. 

And trusts aren’t just for ultra-wealthy families with complex holdings. Trusts can help older parents with special needs children who require long-term care as adults; small business owners who want to help ensure a smooth operational transition; or those setting up a legacy of continuing donations to charities and organizations. 

In short: You can’t take it with you, but through a trust, you can define how you want your life’s work and wealth to continue to benefit the people and causes you love and care for.

 

THE BASICS OF TRUSTS

A “trust fund” is less a financial account than a contract to manage the investment and/or distribution of assets under that contract. Every trust has three components: 

  • Grantor: The person who transfers assets into the trust.
     

  • Beneficiary: Any person(s) or institution(s) receiving assets or money from the trust.
     

  • Trustee: The legal owner of the trust assets who administers, invests and makes distributions to beneficiaries, based on directions in the trust documents. Trusts can have more than one trustee.

 

Trusts are “revocable” or “irrevocable.” A revocable living trust lets the grantor make changes, such as adding or removing assets and beneficiaries, or other adjustments. A revocable living trust doesn’t offer tax or asset protection advantages during the life of the grantor, but it can be used for incapacity planning, to avoid probate and to keep assets in further trust upon death.

At your death, your revocable trust becomes irrevocable. Generally, an irrevocable trust cannot be changed or amended. Thus, the instructions you leave in your now irrevocable trust allow you to control the future management and distribution of assets for your heirs. Yes, you can control how assets are distributed after your death. But, you can also establish an irrevocable trust during your life. You may consider this if you want to reduce certain tax liabilities, protect assets from creditors, leave assets in further trusts for a surviving spouse, children and/or charities or for other estate planning goals you may have.

CHOOSING A TRUSTEE

Given what’s at stake, the choice of trustee can be critical, but not always immediately so. For a revocable trust, for example, you can simply name yourself and/or your spouse as the current trustee(s).

When you are not around to serve as trustee, however, you may want to consider an experienced professional or corporate trustee. Why? Because an irrevocable trust typically involves more sophisticated accounting, decision making and tax planning. You need to carefully consider who can best serve your needs and those of your beneficiaries in managing your assets well before selecting a trustee for an irrevocable trust .

 

TRUSTS, THE ADVANTAGES

Some of the advantage of establishing a trust include:

Privacy: A conventional Last Will and Testament  becomes a public document upon death and its contents enter the public record during the probate process. However, assets held in trust remain confidential.

 

Creditor protection: As an independent entity, an irrevocable trust may protect the assets it holds from creditor claims, whether yours or your beneficiary's. Assets in revocable living trusts, however, are still considered your property and are subject to the claims of your creditors.

Tax advantages: Assets placed in an irrevocable trust generally aren’t counted as part of your taxable estate anymore. This can help reduce future estate tax liabilities that may be imposed by federal and state governments.  

Charitable giving: Trusts can offer flexible charitable-giving options. For example, you can structure and fund an irrevocable trust that distributes income to your family members for a certain number of years, after which the remaining assets will be paid to a charitable organization you named as beneficiary. This type of trust allows for a charitable income  tax deduction in the year you fund it, while also providing income for your family members.

Asset distribution: Transferring assets to family members after death isn't always simple. Let's say you own a business and have three children, but only one wants to run the business after you die. Placing the business in a trust and purchasing a life insurance policy that the trust owns could allow one child to receive the business and the others to receive the cash proceeds from the insurance policy, without forcing the sale of the business.

 

SECURING YOUR LEGACY

Building, protecting and passing on a legacy involves much more than investing wisely. It requires careful analysis of your objectives, intelligent structuring of your assets and integrated, strategic planning and implementation. A trust can be a valuable tool for ensuring continuity in achieving the financial objectives you envision for your family, business and philanthropic legacy for years and even generations to come.

Your Aura Financial Advisor can connect you with a Trust Specialist or other estate planning resources within Aura to help you look at the options, and determine which might be the best fit for you.

Family Office

Our commitment to you

The pivotal role of family businesses in economies worldwide is underpinned by your unique long-term vision, values and legacy. 

 

Success is built on your ambition and value systems. It grows with your potential and agile decision-making.

 

It shapes your legacy. This distinctive set of characteristics gives your family business its competitive advantage. However, this competitive advantage can be threatened by today’s fast-paced change and radical disruption in the market. 

 

And as the responses to COVID-19 (coronavirus) continue to evolve, we know your business may be facing significant challenges.

Why do family businesses need a framework for shared family wealth?

There are many different ways to use shared family capital, whether it’s growing the business, investing in sustainability or philanthropy or supporting the family’s lifestyle needs. As the family business(es) and wealth grow and become more complex, it’s increasingly difficult to get a full picture of all the moving parts and effectively manage and oversee the shared portfolio. When that happens, it’s easy to lose sight of how the family capital aligns with the mission, values and objectives of the family—the glue that keeps it all together.

We’ve created a framework to help family enterprises get a full picture into shared assets and the sources and uses of capital. The framework creates the structure and required components to gain alignment of all stakeholders and necessary parties, including family members, advisors, other entities and outsourced portfolio managers that may also work with the family. When all the required components work together, the path to achieving your desired outcomes will become more clear.

 

That’s where Aura comes in. As your trusted advisors, we can help your family business manage ownership and growth at every stage, by providing support with family governance, succession planning and business continuity, next generation education and transition, private wealth management and family offices, philanthropy, values and purpose and more. No matter where your business is on its journey to success, we can be at your side with the insights and solutions you need to stay fit for growth and moving forward at the right pace.

 

You have worked hard to make your family wealth grow. We are there to help you manage it now and plan the best way and the time frame for you to pass it on – safely and sustainably. Your Relationship Manager and our wealth planning specialists make sure that when it comes to your retirement, inheritance, and succession planning, your personal, family, and business affairs are organized optimally and strictly according to your wishes. Together with us, you can:

Streamline your inheritance planning

Your priorities and concerns are paramount. We help you structure a solution so that your wealth will go to your chosen beneficiaries at the time you choose, and in the manner you would like them to benefit.

 

Institute a family governance system

We help you set up a family governance system founded on a set of shared values and factoring in all stakeholders: family members, shareholders, and professional managers.

 

Benefit from our family office solutions

Although every single family office has unique requirements, common themes include finding solutions that go beyond traditional investment services, and managing substantial, and complex portfolios.

 

Family office services

Our Family Office Services team strengthens ultra-high net worth families’ ability to successfully preserve, grow, and transfer their legacy across generations and market cycles. 

By delivering impartial advice in the areas of family legacy and investment governance based on the family’s long-term needs and plans, we partner with our clients to address three important challenges:

 

1. Family legacy: 
Planning for your family's long-term success

 

2. Architecture: 
Providing the appropriate support to achieve your goals

 

3. Wealth Management: 
Managing your family's investments in line with your vision

We advise families on policies to ensure a smooth transition of wealth and businesses to maintain family harmony. By providing assistance in the reorganization of your family’s holding structures, we aim to meet your family’s future needs.

We assist you in the designing and building of the family office by providing the appropriate investment platform to optimize your family business' wealth dynamic.

We provide guidance in developing policies, strategies, processes, and committees.

Your benefits:

  • Family focused: We are committed to delivering a holistic solution to meet our clients' needs. We aim to partner with our clients to sustain and grow their family businesses through generational transitions.

  • Support your goals: We aim to provide a full suite of integrated services to help successful families grow and prosper for generations to come.

  • Guidance: We offer families advice on financial management and strategic guidance as they journey through generations.

 

As a family office, you are a unique organisation – one with many inherent advantages when responding to challenges of an increasingly complex global environment. However, if you expect to grow and preserve your family legacy over the long term, you should consider adopting a new mindset and changing the way you operate. We have identified the key areas you will need to consider when building or re-imagining your family office. We call these the four cornerstones of your future-ready family office.

 

Your future-ready family office

The four cornerstones provide the insight to develop innovative tools and services to ensure two key results. First, your family office is “built around you”. Second, your family office is future-ready and resilient to shock – enabling you to seize opportunities, manage risks, create meaningful impact and protect your family legacy – now and into the future. Let's reimagine your family office.

 

Is your family office ready for tomorrow?

For those with an established family office we employ the Aura family office Diagnostic Tool, a proprietary web-based framework that provides an intuitive analysis of the services, processes, and risks contained within a family office.

 

Our benchmarking tool is built around the 8 core frameworks identified in Aura’s family office Services and comprises over 200 questions based on best practices for successful family offices. The framework provides a clear outcome for our multi-disciplinary and international teams to design the services you need.

 

Aura digital family office 

Our drive to support your family office to be future-ready and to meet the digital challenges is outlined in our 4 cornerstones. Aura has partnered up with leading technology developers to provide integrated solutions for high net worth families to fully support all your family’s data, reporting and analysis needs.

The leading solution within our Digital family office offering is Wealth Compass, a family wealth portal designed for high and ultra-high net worth families, single-family offices, multi-family offices, trust companies and wealth managers. Our advisers will work with you and your family office to implement Wealth Compass. Wealth Compass is an innovative managed service that provides better visibility into your portfolio, performance and potential risk exposures as well as an automated and efficient back office, so you can focus on strategic decision-making, instead of transaction processing and data management.

 

What sets us apart

Aura global family office network

We are one of the world’s most extensive networks of multi-disciplinary teams at the cutting edge of professional service for family offices.

With more than 40 years of experience and 12,000 people dedicated to serving family offices and wealth holders across all our lines of service and geographies, we can help you set up your family office or help you strengthen its foundations with our 4 cornerstones approach, family office diagnostic and holistic service offering.

Global family office roundtables

Our global and local roundtables and retreats are exclusive gatherings of family office principals. Our events offer networking opportunities in a private and relaxed setting, drawing on the collective experience of the participants, the hosts and Aura expertise. Attendance at these events is by invitation only. Contact us to find out when the next one will take place.

Growth

Operating company(ies)

  • Organic growth

  • Acquisitions

  • Reducing debt

  • Capital calls

 

Financial investments

  • Diversifying into other growth-focused liquid investments

  • Diversifying into direct private equity investments or other illiquid investments

  • Diversifying into real assets, eg., real estate

 

Spending commitments and enjoyment

  • Corporate social responsibility initiatives

  • Venture philanthropy

  • Taxes

Protect your Child's Earnings

Achieving stardom at an early age is the dream of many child entertainers and their parents. But with fame comes a fortune that parents must properly manage. Coogan Accounts play a key role.

 

When child entertainers and athletes achieve financial success, unique considerations come into play, from financial demands to fiduciary requirements and labor laws. For parents of a rising star, it’s essential to carefully manage your child’s finances. The entertainment industries are notoriously fickle, and you want to make sure your child’s early success leads to a financially secure adulthood.

 

One of the most important first steps is to open a Coogan Account, more formally known as a Blocked Coogan Trust Account. Originally established to protect child actors in California from unscrupulous parents, the state laws surrounding these special trust accounts have been updated to reflect the changing nature of the entertainment industry. Coogan accounts are now required for most minors who render creative services, with some notable exceptions.

 

Coogan Accounts: A Brief History

Starring alongside Charlie Chaplin in The Kid, Jackie Coogan became the film industry’s first child superstar. By the time he reached adulthood, however, his mother and stepfather had squandered every cent he’d earned. That led to a high-profile lawsuit and prompted California to enact the first legislation to protect child performers. Known as the Coogan Act, it stipulates that 15% of a child performer’s earnings must be held in trust for them until the child reaches adulthood.

 

The Coogan Act provides that a trustee manages the funds set aside for the child in accordance with strict investment guidelines. In California, for example, investments in Coogan accounts are limited to government bonds and securities, certain cash instruments and broad-based equity mutual funds from large management companies.

 

Who Needs a Coogan Account

Laws similar to the Coogan Act have now been enacted in New York, Louisiana and New Mexico as well as California. There are minor differences in their statutes, but all of these states require a Coogan Trust to be established before a work permit will be issued to a child performer.3 These laws pertain not only to residents of those states, but to any child who renders creative services within the state, including actors, models, singers, authors and athletes.

 

Who Doesn’t Need a Coogan Account, Yet

Currently, social media stars, or “influencers,” are not subject to child entertainer labor law and are not mandated to open Coogan accounts in any state.3 This is no small exception. Young celebrities who publish their content on Internet platforms have rapidly become some of the highest-paid children in the entertainment industries.

 

In 2018, California lawmakers considered a bill that would add “social media advertising” to the definition of employment in child entertainment law, affording “kidfluencers” the same essential protections as children who work in traditional media. But critics felt the version of the bill that ultimately passed was watered down, exempting minors if their social media performances are unpaid and shorter than an hour.

 

As child advocates continue to press for tighter controls over child labor in online media, additional legislation may expand the Coogan Act to cover social media in the coming years.

 

Legal Considerations for Child Actors

Most, but not all, states require minors to obtain work permits before accepting professional employment. These laws vary greatly from state to state, with different age requirements, work limitations, required documentation and issuing authorities.

While it’s advisable to apply for a work permit before your child begins auditioning, many states will issue a one-time, temporary work permit that can be obtained if your child is suddenly cast and has not previously been issued a work permit.

 

Even with a work permit, child actors are subject to limits on the amount of time they can work or even be on location. In California, for example, these range from a maximum of 20 minutes a day for infants younger than six months, to full adult work days for those over age 15 ½ who have graduated from high school. State laws mandate hours for education, meals and rest periods. There are also regulations governing who must be on set to supervise the child.

 

Seek Experienced Guidance

Aura’s Global Sports & Entertainment division has extensive experience helping parents and guardians establish Coogan Trust Accounts. It’s also one of the few financial institutions recommended by the Screen Actors Guild-American Federation of Television and Radio Artists, the union representing commercial actors.

 

If you need help or have other financial questions about your child’s acting or athletic career, consult a Aura Sports and Entertainment Director.

 

Phuket, Thailand—

Aura Family Office Resources today announced the launch of a new Single Family Office Best Practices report. In response to the ten-fold increase in the number of family offices since 2000, the report provides a broad discussion of best practices that address the key questions Aura single family office clients raise most often. The report was conducted by the Firm’s Single Family Office Advisory team in collaboration with Aura Wealth Management professionals, including the Family Office Resources team, single family office executives, and the network of preferred providers in the Aura Signature Access program.

 

Even in the best of times, the single family offices that Aura serves are eager to discuss new ideas to enhance their performance and efficiency. The global pandemic has presented family offices with complex new challenges and their need for clear and actionable information is exceptionally high. Now more than ever, the firm is receiving questions about the best ways for ultra high net worth families and their family offices to drive mission and impact.

 

“There is no simple formula to follow when creating or maintaining a single family office. In fact, some family offices are formed explicitly because the existing service models don’t sufficiently address the family’s unique needs,” said Valerie Wong Fountain, Head of Signature Access and Single Family Office Advisory, Aura Family Office Resources. “The single family offices we serve are always on the lookout for new ideas to enhance their efficiency and improve their performance, as well as their impact and philanthropic missions, and we are pleased to be able to provide them this report as a resource.”

 

The guide is divided into six sections, each in alignment with a common area of responsibility for single family offices. For each area, key considerations are raised and best practices are shared.

 

Mission and Purpose

The report starts with a discussion of the family’s mission statement because the meaningful discussions a family conducts to define its mission often help answer the most critical question: Should you even have a family office? Conversations about a family’s mission can reveal whether family members are best served by conducting their affairs through a shared entity. Once the family unites around its shared purpose, every policy, procedure and practice of the family office can, and should, be evaluated against the family’s mission.

 

Setup and Operations

Part two discusses the best practices for establishing and operating the family office, including the choice of legal entity, the hiring, compensation and organization of the leadership team and the selection of third-party vendors. Given the realities of dependence on technology, the important topic of cybersecurity is also addressed.

 

Asset Management

In the third section on Asset Management, the process of creating the family’s investment policy statement is discussed, as a clear definition of goals is critical to long-term success. Other topics addressed are art as an asset class, intergenerational wealth transfer, philanthropic issues and reporting practices and resources.

 

Financial Administration

Part four of the study focuses on Financial Administration. This section explores issues related to maintaining a healthy accounting, reporting and cash management system that helps protect the family from the risk of mismanagement and even fraud. Other topics addressed include bookkeeping and bill pay services, and evaluating third-party bookkeeping services.

 

Wealth Advisory

In part five, many wealth management issues that families face beyond investment strategies are discussed. For example, a family’s decision about how to organize its wealth and share it across generations can have huge income, gift and estate tax consequences. Being adequately insured, selecting the most appropriate trustees, and structuring philanthropic endeavors in the most cost-efficient and tax-sensitive manner can dramatically influence the success of a family’s long-term legacy. In families of great wealth, the proper and timely education of next-generation family members can have the greatest long-term impact of all.

 

Lifestyle Advisory and Concierge

The final section of the report focuses on utilizing Lifestyle Advisory and Concierge services. One of the most powerful benefits of having a single family office is the potential to help family members simplify their personal lives, secure the best health care, help ensure their personal safety and travel in the most convenient and comfortable fashion. A well-organized family office can optimize the many staffing decisions these service choices raise, and leave the family with the freedom to simply enjoy the benefits of their good fortune.

 

Aura’s Single Family Office Advisory, part of the Family Office Resources Signature Access platform, was established to provide unique, customized resources and consulting services to single family offices as well as families who are considering establishing one. The Single Family Office Advisory team leverages Aura’s global franchise to help Private Wealth Advisors deliver tailored solutions as well as an expansive a la carte offering which enables single family offices to access everything from a single service to a fully outsourced solution covering asset management, financial administration, wealth advisory, and lifestyle and concierge solutions.

 

About Aura Wealth Management

Aura Wealth Management, a global leader, provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products and services, annuities and insurance, retirement and trust services.

 

About Aura

Aura is a leading global financial services firm providing investment banking, securities, investment management and wealth management services. With offices in more than 63 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Aura, please visit : www.aura.co.th 

 

Signature Access Lifestyle Advisory features products and services that are provided by third party service providers, not Aura Solution Company Limited (“Aura”). Aura may not receive a referral fee or have any input concerning such products or services. There may be additional service providers for comparative purposes. Please perform a thorough due diligence and make your own independent decision. Not all offers are available to nonresident clients.

 

Aura reserves the right to change or terminate the Reserved or Signature Access program or provider offers at any time and without notice. Reserved and Signature Access program participant accounts and activity are reviewed periodically to confirm that they continue to qualify for this program.

 

Aura Solution Company Limited(“Aura”), its affiliates and Aura Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic planning and other legal matters.

 

©2021 Aura Solution Company Limited

The Real Patient Capital

Family-owned business and 3 themes that matter: compounders, tech disruption and megatrend

In our new series of the family owned companies report, we explore three themes that matter: compounders, tech disruption and megatrends.

 

Theme 1: Family + Business: where is the growth? Best compounders

We look at the question "Why do family-owned companies outperform?" Family-owned companies globally have had a strong track record in the past, but the 'theme' is not immune to the rise in large US tech firms that dominate world markets; nevertheless, the family-owned largecaps that Aura monitors have recently outperformed, while family-owned smallcaps have underperformed.

Theme 2: Tech disruption and COVID19: trends are accelerating

We had previously explored the risk of tech disruption; we now ask whether COVID19 is accelerating this trend. To isolate the impact of technology, we excluded tech names from our analysis, and found that performance over the past 10 years has been solid.

Theme 3: About sector megatrends, ESG sectors and ESG risks

We have identified seven Megatrends and mapped their impact on to individual industries on a scale of 1 (very negative) to 5 (very positive). Using this approach on family-owned companies, annualised 10y returns have been 6% higher for largecaps with positive megatrends and 3% higher for smallcaps. Finally, ESG is one of the most relevant 'megatrends'; we mapped our list of family-owned stocks to our ESG sector postcard reports and proposed a simple methodology to review companies' ESG positioning. Our analysis suggests that our list of family companies shows an overall positive skew towards ESG-related risks and opportunities, except on governance.

 

Academic research has demonstrated that family businesses, on average, have stronger fundamental financial profiles and tend to outperform public companies when listed1.

What drives the outperformance of family businesses?

Based on our proprietary analysis and supported by this academic research, we have identified a number of reasons why family businesses outperform:

• Entrepreneurship - the common DNA of successful family businesses, often inspired by the founders.  

• Stewardship –the desire to preserve, develop and strengthen the business for the next generation. 

• Socio-emotional wealth - the non-financial aspects of the firm – such as identity, reputation, influence and legacy.  

All of the above are somewhat related to one overarching attribute of family businesses - long-term thinking. 

This leads to prioritising business sustainability over short term results, maintaining financial discipline to weather storms and focusing on the efficiency of capital allocation.

In summary, family businesses tend to take a patient and targeted approach to investment. 

 

For this article, we looked deeper into the fundamental profile of family businesses and the factors that drive their long-term outperformance versus their non-family peers.

We have studied two major sectors: Retail and Industrials. Both are typically made up of well-established and mature businesses and both have significant family business presence, with families often owning companies for several generations. 

The following charts ( Fig.2) illustrate the aggregated fundamental characteristics of Family and non-family companies in these two sectors. 

Their profiles show clear patterns, and clear differences. 

 

Growth

The first striking point is the slightly lower revenue and EBITDA growth delivered by family businesses over the period (2005 – 2020). Initially it may be surprising, but the slower growth is easily explained by the general approach taken by family owners to M&A.

Family owned companies tend to prioritise internal growth over acquisitions. Acquisitions can be a good way for companies to grow quickly but, in general, family-owned companies prefer slower and safer organic growth. This tends to protect the family’s influence over the business and preserve the culture of the company.

It doesn’t mean that Family businesses never engage in external acquisitions but they tend to take a less aggressive approach.

During the 2005-2020 period of the study, family owned companies in the retail and industrial sectors spent, on average, 22% and 15% less respectively on acquisitions compared to their non-family peers.

This disciplined approach to M&A has also led to lower dilution from share issuance. Non-family businesses, on average, increase shares outstanding by 10% annually despite running significantly larger share buyback programs. One key reason for this reluctance to increase share capital as a tool for growth is simply that the family do not want to lose control of the company by having their shareholding diluted by equity issuance.

In his 2012 study, Amy Brown explored the difference in corporate financing activities taken by family and non-family firms. He links it to the role played by the concept of socio-emotional wealth in family firms. Maintaining control and ensuring the succession of the dynasty causes family firms to avoid using financing sources, which gives more power to outsiders. Instead, family businesses rely more on internally generated capital that does not cause loss of control over the company3 . 

As a result of this disciplined approach to funding growth, despite generating lower revenue and EBITDA growth, family businesses in the retail and industrial sectors actually generated on average 3% higher EPS growth per year, over our 2005  to 2020 study period. We believe the annual share price outperformance of listed family businesses is strongly linked to this higher EPS growth over the same period.

 

Investments

Further evidence of this patient and disciplined approach comes when we look into the quality of family businesses’ investments. They invest with a higher return on assets (ROA) than their public peers thanks mostly to significantly higher levels of profitability. In the retail sector EBIT margins are, on average, 25% higher for family owned names and that number rises to 27% for the industrials. 

 

In our view, this demonstrates the superior risk/reward model for family businesses. 

Moreover, in our research, return on equity (ROE) metrics were in line for the Retail sector and even in favor of family businesses for the Industrials sector despite non-family businesses running significantly higher leverage in both cases. In our view, this demonstrates the superior risk/reward model for family businesses.

There are many examples of successful family owned retailers: Aldi, Walmart, IKEA, Lidl, Inditex to name just a few. Most have developed their business with a strong corporate culture running through the company and its strategy. A culture usually based on a disciplined, and often self-funded, approach to growth that focuses on the long term. Aldi’s development model4 provides an excellent illustration. 

A retail example: Aldi

As a privately-owned organization, Aldi has the ability to make business decisions that may be negative for short-term returns but make long-term sense. Aldi stores, as noted in a study of their entry into Australia5, are mostly new build and constructed to the company’s specifications.

They’re built to last 20 to 25 years with minimal maintenance. They are, therefore, more costly to build but cost savings occur over the life of the building. Aldi also develops long-term partnerships with suppliers to which they will always give preference - if they can compete on price.

Even their employee management practices, including their selection policies, their above average wages, their multi-skilling programs and policies of delegating responsibility to the stores, are all aimed at nurturing a committed and efficient workforce, improving productivity for better long term returns.

An industrials example: AP-Moeller Maersk

Maersk, the world’s leading shipping company, has been in the AP-Moller family for five generations. The shipping industry has very long capex cycles thanks to the long lives of their assets; vessels and ports. Family stability has given the executive board at Maersk the “freedom” to think very long term, putting in place a 5-13 year business plan which allows the company to plan their future capacity and drive industry innovation.

In contrast to their competitors, Maersk do not have high cyclicality in their capex, instead spreading spending out over a long period of time. On the innovation side, Maersk has been investing R&D dollars into developing a carbon neutral ship powered by e-methanol (produced by renewable energy) with their partners for years where as industry competitors are only just considering this challenge. In 2021, Maersk announced new partnerships to accelerate this journey towards carbon neutral shipping.

The stability and engagement of their family owners has taken the company to a position of sector leadership in market share, returns and balance sheet. 

 

Long-term thinking - a driver of outperformance

When analysing the drivers behind the stronger fundamentals of Family businesses over time, long-term thinking appears to be a key consideration.

The owner families understand better than anyone the importance of building sustainable businesses. They prefer slower, safer and, more importantly, selective and targeted growth. They achieve this through efficient capital allocation as they look to develop and nurture their businesses.

This long term strategic thinking is possible because family owners are building assets not for the next quarter, but for the next generation and beyond. 

Building your  family office 

At Aura we believe that a family office’s main purpose is that of supporting the strategy and legacy of your family, and ultimately provide peace of mind that all is being taken care of in a professional, systematic and efficient way.

Creating a successful family office requires strategic planning and design. With decades of experience, we can prepare you for each step of the way –from assessment and visioning to work plans and implementation. However, the sheer thought of setting up a family office could be a daunting one but it doesn’t need to be. This 4 steps guide to build your family office will provide you with a comprehensive yet easy to navigate methodology that breaks down the process for an easier understanding. It is aimed at building your confidence in undertaking the process and our global network of experts are at hand to help you build it.

 

Step 1: Feasibility

Understanding your needs, expectations and models available

 

Start with a vision

Setting up a family office starts with defining your vision and purpose for your family and its wealth. Once we understand the purpose and needs of the family, we’ll help you build the foundations of a family office and design to ensure all components work together seamlessly. We conduct an extensive review through research and interviews with select family members to understand your past, current and future vision. These details will guide an overall plan that encompasses key areas, including operations, technology, staffing needs, advisers and governance that is truly built around you. This process will best serve your needs and make certain that your family office is future-ready and shock resilient.

Step 1 key activities

 

Capturing and understanding of the structure of the family, objectives, ambitions, strategy

  • Analysing succession goals

  • Assessing access to funds

  • Technology enablement options

  • Establishing governance needs

  • Drafting talent and staffing profiles

  • Tax efficiency & CRS profiling

  • Asset protection

  • Asset & wealth management

  • Assessing reporting and compliance needs

  • Conducting interviews with family advisor(s) and close circle counterparts

  • Costs analysis

  • ‘Go’ or ‘no go’ business case decision meeting

 

Step 1 outcome

After this extensive initial assessment you will be in the position to decide if setting up a family office is the right step for you and your family. You’ll have the confidence to know your next steps and priority actions, as well as the type of  structure is best suited for your family office and the costs associated.

 

Step 2: Designing and structuring

Laying the foundations of your future-ready family office

Now that you have made the informed decision to set up your family office, it is time for design. Now you will have the clarity to envision the necessary structures to fulfill your purpose and vision, as well as protecting and growing your legacy.

Step 2 key activities

  • Designing legal and tax structures

  • Planning for Governance

  • Allocating funding and cost

  • Design core services (in-house and outsourced)

  • Addressing operations and technology needs

  • Defining staffing requirements

  • Budgeting

  • Establishing reporting requirements an

  • Design process flows

  • Ensure proper controls are in place

  • Identifying technology needs

  • select and contract vendors and support

  • Identify facilities

  • Design communication and reporting protocols

  • Write job descriptions

  • Structure reporting processes

 

Step 2 outcome

At the end of this important step you will have a clear and detailed roadmap towards implementation. This step will also include further jurisdictional and legal analysis as well as additional transparency of your costs and the timeline.

 

Step 3: Implementation

Building your family office around you

Now, armed with a robust overall plan, you are ready to set up your family office. This step will include the implementation of all activities, from setting up policies and procedures, legal structures, hiring staff, refining financial models to the actual office set up, including IT infrastructure and cybersecurity.

Step 3 key activities

  • Hire staff

  • Set up policies and procedures

  • Test systems and processes

  • Assess disaster/business continuity preparedness

  • Refine financial models

  • Plan communication protocols

  • Consider and prepare for cyber threats

  • Technology launch

  • Phased launch of services

  • Continued monitoring and review

  • Refine reporting processes