Wealth E-Book

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: PESS - Polity Economy and Society Series
• Sprache: Englisch

Seitenzahl: 370

Veröffentlichungsjahr: 2010

Beschreibung

In Wealth, Merrill Lynch and Capgemini present a readable guide on what drives the success of HNWIs, as well as the trends, growth, increased complexity and competitiveness of the global wealth management market, all based on over a decade of research. Full of wealth-building strategies for HNWIs everywhere, as well as for those who aspire to join their ranks and those who advise them, Wealth is a complete guide to successful holistic wealth management. Comprehensive coverage includes: * What you should aspire to achieve with your wealth management goals. * New ways in which HNWIs should be thinking about planning for the future. * How to get to the next level of wealth. * Trends, similarities and differences in various regions around the world. * Innovative approaches to asset allocation and alternative investments. * The increasing role of philanthropy, the growing importance of inter-generational wealth transfer, and other emerging issues for HNWIs. * In-depth interviews with prominent high-net-worth and ultra-high-net-worth individuals as well as advisors. * Provocative thinking on where the future of the wealth management industry is going.

Leseprobe

Table of Contents

Title Page

Copyright Page

Dedication

General Disclaimer:

Specific Disclaimer: Alternative Investment Strategies (Chapter 6)

Acknowledgements

Foreword

TAKING FULL ADVANTAGE OF A WEALTH OF OPPORTUNITIES

APPRECIATING WHAT A DIFFERENCE A DECADE MAKES

LEVERAGING HOLISTIC WEALTH MANAGEMENT TO MEET THE DEMANDS OF THE MASERATI ...

RECOGNIZING “ASSET ALLOCATION” AS SIMPLY CODE FOR “RISK MANAGEMENT”

PREPARING FOR INCREASED DEPENDENCE ON ALTERNATIVE INVESTMENTS

WITNESSING THE RISE OF INTERNATIONAL INVESTING

EXPLORING THE EMERGENCE OF GENERATIONAL WEALTH ISSUES

CHANGING THE RULES AND ROLES OF PHILANTHROPY

LOOKING TO THE FUTURE OF WEALTH MANAGEMENT

CHAPTER 1 - The Evolution of Wealth Management

PREPARING THE NEXT GENERATION

TRANSITIONING FROM A TRANSACTION-BASED INDUSTRY TO WEALTH MANAGEMENT

ADVOCATING THE TRIPLE-A WEALTH MANAGEMENT STRATEGY

PLACING A RENEWED FOCUS ON THE WEALTHY

THE CHANGING ROLE OF THE FINANCIAL ADVISOR

IMPROVING THE ADVISOR-CLIENT DIALOGUE

UNDERSTANDING THE HNWI ADVANTAGE: HOW THE WEALTHY MANAGE TO ENJOY ROBUST ...

DESCRIBING THE STATE OF THE WORLD’S WEALTH

PRIME DRIVERS OF HNWI WEALTH

LOOKING FORWARD

CHAPTER 2 - Global Trends and What They Mean for International Investing

COINING THE TERM “EMERGING MARKETS”

GLOBALIZATION’S GROWING IMPACT ON HIGH-NET-WORTH INDIVIDUALS

CHINA: AN EMERGING MARKET FOR FOREIGN INVESTMENT

INDIA: A GROWING MAJOR ECONOMIC FORCE

THE EUROPEAN UNION: THE WORLD’S LARGEST INTEGRATED ECONOMY

UNITED STATES: LOST LUSTER

LATIN AMERICA: A GROWING REGIONAL ECONOMY

GLOBALIZATION PROMOTES LOCAL INVESTING

RADICAL CHANGES IMPACT INVESTMENT OPPORTUNITIES

INTERNATIONAL MARKETS’ SUCCESS IS FORCING U.S. INVESTORS TO RETHINK THEIR ...

EMERGING MARKETS BECOME MAINSTREAM

BEYOND EMERGING MARKETS LIES THE FINAL FRONTIER

CHAPTER 3 - Technology’s Critical Role in Wealth Management

DAWNING OF THE DIGITAL AGE

DISPELLING FIVE MYTHS OF ONLINE PRIVATE BANKING

EXAMINING THE THREE FACES OF INFORMATION TECHNOLOGY

ASSESSING THE ROLE OF TECHNOLOGY IN THE ADVISOR-CLIENT RELATIONSHIP: A ...

OUTSOURCING FUNCTIONS: THE JOYS AND PERILS

MELDING INFORMATION TECHNOLOGY AND CULTURE

CHAPTER 4 - Holistic Wealth Management

MOVING BEYOND INVESTMENTS TO A BROADER RANGE OF SERVICES

EXPECTING MORE EXTENSIVE FINANCIAL ADVICE

USING DEBT TO BUILD WEALTH

DEFINING THE ROLE OF FAMILY OFFICES WITHIN WEALTH MANAGEMENT

EXPECTING CLEAR REPORTING

DEMANDING PRIVACY

CHAPTER 5 - The Doctrine of Asset Allocation

ENHANCING RETURNS WITH MODERN PORTFOLIO THEORY (MPT)

UNCOVERING THE PREFERRED ASSET ALLOCATIONS OF THE WEALTHY AND ULTRA-WEALTHY

MOVING BEYOND MODERN PORTFOLIO THEORY

COMMENTING EXPERTLY ON ASSET ALLOCATION

CHAPTER 6 - Alternative Investment Strategies

THE APPEAL OF ALTERNATIVE INVESTMENTS

STRUCTURED PRODUCTS FOR INDIVIDUALS

DEVELOPING NEW PRODUCTS BY LISTENING TO INVESTORS

GRABBING HEADLINES: HEDGE FUNDS AND PRIVATE EQUITY

FACING THE CHALLENGES AHEAD

CHAPTER 7 - Family Matters

FOSTERING FINANCIAL LITERACY, HNW STYLE

PARTAKING IN VALUES RETREATS

ENABLING THE NEXT GENERATION OF WEALTHY THROUGH PEER NETWORKING

PREPARING FOR GREAT WEALTH TRANSFER

CREATING A WEALTH TRANSFER PLAN

RECOGNIZING REGIONAL DIVERSITY

APPRECIATING GENDER DIFFERENCES

PRESERVING THE FAMILY LEGACY

CHAPTER 8 - The New Philanthropy: Proactive Involvement

GIVING WITH PURPOSE

PHILANTHROPY LESSONS FROM ONE OF GREAT BRITAIN’S WEALTHIEST MEN

COMMITTING FUNDS AND DEMANDING ACCOUNTABILITY

COMPARING REGIONAL DIFFERENCES

GLOBAL TREND 1: THE RISE OF VENTURE PHILANTHROPY

GLOBAL TREND 2: GIVING WHILE LIVING

TAKING TAX CONSEQUENCES INTO ACCOUNT

MAKING A DIFFERENCE WITH FAMILY FOUNDATIONS AND DONOR-ADVISED FUNDS

WITNESSING A DECLINE IN GIVING?

EXPRESSING OPTIMISM FOR HNWIS’ GRANDCHILDREN

CHAPTER 9 - The Future of Holistic Wealth Management

CREATING CONDITIONS TO BUILD AND PRESERVE WEALTH FOR THE FUTURE—THE MICHAEL ...

IDENTIFYING FUTURE TRENDS TO TAKE INTO CONSIDERATION

INCREASING WEALTH ACROSS THE GLOBE

EASING THE STRESS OF INTERGENERATIONAL WEALTH TRANSFER

TRENDING TOWARD OPEN ARCHITECTURE AND UNBIASED ADVICE

INDEX

Copyright © 2008 by Merrill Lynch, Capgemini

All rights reserved. No part of this work covered by the copyright herein may be reproduced or used in any form or by any means—graphic, electronic or mechanical without the prior written permission of the publisher. Any request for photocopying, recording, taping or information storage and retrieval systems of any part of this book shall be directed in writing to The Canadian Copyright Licensing Agency (Access Copyright). For an Access Copyright license, visit www.accesscopyright.ca or call toll free 1-800-893-5777.

Care has been taken to trace ownership of copyright material contained in this book. The publisher will gladly receive any information that will enable them to rectify any reference or credit line in subsequent editions.

Library and Archives Canada Cataloguing in Publication Data

Wealth : how the world’s high-net-worth grow, sustain and manage their fortunes / by associates of Merrill Lynch and Capgemini.

Includes index.

eISBN : 978-0-470-67511-3

1. Finance, Personal. 2. Wealth. 3. Investments. 4. Rich people—Finance, Personal. I. Merrill Lynch & Co. (1973- ) II. Capgemini (Firm)

HG179.W.024’01 C2008-900607-0

Production CreditsCover design: Michael Freeland Interior text design: Adrian So Printer: Friesens

John Wiley & Sons Canada, Ltd. 6045 Freemont Blvd. Mississauga, Ontario L5R 4J3

FP

To Our Clients and Our Colleagues

General Disclaimer:

The information contained herein was obtained from various sources; Capgemini and Merrill Lynch do not guarantee its accuracy or completeness nor the accuracy or completeness of the analysis relating thereto. This book is for general circulation and is provided for general information only. Any party relying on the contents hereof does so at its own risk.

The information and case studies in this book are intended to be a general introduction to wealth management. They are not intended to be either a specific offer by any Merrill Lynch entity or person to sell or provide, or a specific invitation to apply for, any particular product or service. Merrill Lynch and its affiliates offer a broad range of brokerage, investment advisory (including financial planning), banking, trust, mortgage and other financial services and products. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill Lynch’s obligations will differ among these services. Neither Merrill Lynch nor its Financial Advisors provide individual tax advice. Clients should review any planned financial transactions and strategies that may have tax implications with their personal tax advisors.

Specific Disclaimer: Alternative Investment Strategies (Chapter 6)

Most alternative investments are sold in private placements and may be offered only to individuals who are both Qualified Purchasers and Accredited Investors. No assurance can be given that any product’s investment objectives will be achieved. Many alternative investment products are sold pursuant to exemptions from regulation and, for example, may not be subject to the same regulatory requirements as mutual funds. Each product will be subject to its own specific risks, including strategy and market risk.

Hedge funds are speculative and involve a high degree of risk. An investor could lose all or a substantial amount of his or her investment. There is no secondary market nor is one expected to develop for investments in hedge funds and there may be restrictions on transferring fund investments. Hedge funds may be leveraged and performance may be volatile. Hedge funds have high fees and expenses that reduce returns.

A private equity investment involves significant risks and is illiquid on a long-term basis. Interests may not be transferred, assigned or otherwise disposed of without the prior written consent of the manager. Investors may lose their entire investment. Private equity funds are subject to significant fees and expenses, including management fees and, typically, a 20% carried interest in the net profits generated by the fund paid to the manager. Private equity funds may make a limited number of investments, and such investments generally will involve a high degree of risk, such as start-up ventures with little or no operating histories, or companies that may utilize significant leverage.

ACKNOWLEDGMENTS

While the idea for WEALTH was inspired by the tenth anniversary of the World Wealth Report, it quickly took on a life of its own. This deeply collaborative effort has evolved over the past two years to, we hope, provide a richer view of the world of wealth.

First and foremost, we would like to thank the management of Merrill Lynch and Capgemini for their support in agreeing to support this effort amidst multiple priorities, as well as the many thought leaders who graciously agreed to share their views, insights and lessons learned about wealth and its preservation. Of these, we are particularly grateful for the expertise and guidance of Bob McCann, Vice Chairman and President of Global Wealth Management at Merrill Lynch, and Bertrand Lavayssière, Managing Director of Global Financial Services for the Capgemini Group. If not for their steadfast support and deep industry knowledge, the storyline could not have matured.

Secondly, we would like to thank the management of Merrill Lynch and Capgemini for their support in agreeing to support this effort amidst multiple priorities, as well as the many executives at both firms who invested considerable time and effort in reflecting and commenting on the points of view expressed in this book. The ability of both organizations to reach out to a global network of economists, academics and experts in the field for validation and support was a key factor in broadening the scope of the work.

Thirdly, Capgemini and Merrill Lynch would like to thank Michael Sisk of Hamilton, Bridges Media Inc., for the numerous interviews he conducted across the globe, and for his skilled organization of the many stories and ensuing research into a commendable first draft. In the process of guiding our manuscript to completion, Stephen Fenichell of Merrill Lynch’s Executive Communications group provided color, texture and a narrative framework, in addition to conducting further interviews and research.

We would also like to extend our sincere appreciation to Petrina Dolby of SECOR Consulting for her insight, creativity and tenacity in overseeing this complex and collaborative process.

On the Capgemini team, we would like to acknowledge the key contributions of William Sullivan, Manager of Capgemini’s Global Wealth Management Center of Excellence, for his leadership in the book’s development; Scott Becchi, Karen Cohen, Chris Gant, Andres Guibert, Bob McGraw, Patrick Neuwirth, Eric Rajendra, Stephen Ray, Ileana van der Linde, Liz Witt, and Alan Young from Capgemini’s Financial Services practice for providing industry insights and expertise; and Capgemini’s Strategic Research Group for providing research and in-depth market analysis. We would also like to thank Capgemini’s Group management for supporting this endeavor.

At Merrill Lynch, Erik Hendrickson, Michael O’Looney and Tricia Nestfield provided industry perspective and oversight of the editorial and research process.

We would additionally like to recognize the contributions of a number of senior executives at Merrill Lynch, including: Stacy Allred, Sameer Aurora, John Barrett, Nancy Bello, Richard Bernstein, Stephen Bodurtha, Candace Browning, Darcie Burk, August Cenname, Daniel Dunn, John Hogarty, Richard Jones, Karen Klein, Joseph Lam, Albert Lee, Rahul Malhotra, Patricia McLaughlin, Marcus Mitchell, Alyssa Moeder, former CEO Stan O’Neal, Paula Polito, David Ratcliffe, Diane Schueneman, Raj Sharma, Dan Sontag, Ed Specter, Michael Sullivan, Tom Sweeney, Victor Tan, John Thiel, Kevin Waldron, and Ken Winch.

We would like to express our appreciation to our colleagues at Wiley for adeptly steering WEALTH through the publishing process and for their collective commitment to editorial excellence. A special thank you goes to Karen Milner, Elizabeth McCurdy, Pamela Vokey, Peter Knapp and Lucas Wilk.

Finally, we have benefited enormously from the many industry authorities and clients who have been so generous with their time in granting extensive interviews for this book. Namely: Antoine van Agtmael of Emerging Markets Management, LLC, Patricia Angus of Shelterwood Financial Services, Jacques Attali of PlaNet Finance, Edward Bernard and James A.C. Kennedy of T. Rowe Price, Dr. James Canton, Jon Carroll of Family Office Metrics, Charles Collier of Harvard University, Larry Fink and Ralph Schlosstein of BlackRock, Doug Freeman and Lee Hausner of IFF Advsiors, Gerald Cavendish Grosvenor, The Duke of Westminster, Gregory Johnson of Franklin Templeton Investments, Michael Lee-Chin of AIC Investments, James Rothenberg of Capital Research and Management, Michael Saadie of ANZ Private Bank, Dr. Lee Shau Kee of Henderson Land Development, Charlie Simonyi, Domhnal Slattery of International Aviation Management Group, Dr. Paul Tiffany of The Wharton School of Business of the University of Pennsylvania and of the Haas School of Business of the University of California, Berkeley, and Dr. Cheng Yu-Tung of New World Development.

FOREWORD

Our Eight Convictions about the Future of Wealth Management

By Bertrand Lavayssière, Managing Director of Global Financial Services for the Capgemini Group and Bob McCann, Vice Chairman and President of Global Wealth Management at Merrill Lynch & Co.

The world is witnessing the greatest period of wealth accumulation in history. Never before have so many people from so many different regions of the earth become so wealthy in so short a period of time. And never before have so many opportunities existed to create new wealth, both as the natural outcome of new ideas and the product of existing capital appropriately and prudently leveraged. Due to the downfall of the Berlin Wall in 1989, coupled with the concomitant rise of global capitalism and globally integrated capital markets, the twenty-first century presents an unprecedented opportunity for innovative and entrepreneurial spirits to profit from these long-term secular trends. This will continue to fuel the concentration and consolidation of wealth at the unprecedented velocity witnessed over the past decade. Although economic disruptions and volatility can by no means be relegated to history, we firmly believe that the future of global capitalism is bright. In support of this belief, we have documented and validated eight convictions, which we are convinced will continue to shape the world of wealth as it evolves in the twenty-first century.

Eight Firmly Held Convictions Regarding the Future of Wealth Management