Where do SMA's stand in Q1 and Q2 2024? There is a common perception in the investment world that active managers have an advantage over passive managers during times of increased volatility, since active managers can go on the defensive, whereas passive managers have strict mandates to mimic an index. After an extended time period (2012 – 2019) where equity volatility, measured by the CBOE VIX index, traded below its 20-year average of 20.1, volatility increased during the peak of the pandemic. After a bout of low volatility in 2021, volatility surged above its 20-year average in 2022. ...

Today’s family office plays a far more complex role than merely overseeing financial stewardship. It has evolved into the family’s primary advisor, akin to the consigliere of old, expected to possess a holistic view of the family’s world. This encompasses navigating daily life, educating family members and advisors, identifying blind spots, and ensuring no crucial details are overlooked amidst all of the moving pieces. Additionally, it involves guiding the creation, preservation, and transmission of family values and legacy, as well as being prepared for smooth transitions and successions. And...

As we look ahead to fall, here’s a glimpse of what summer was like: Summer is when the valuation team prepares for the busy times ahead. While our work never truly slows down, we take this opportunity to help ensure we’re well prepared during the busy times. Our summer was full of initiatives like training analysts, getting acquainted with future talent through our intern program, refining templates, and exploring new ways to help our clients create, grow, and protect value. We also spent a little more time digesting economic trends and forecasts and considering what implications these vari...

Our very own CEO, Peter Moustakerski, was recently featured in Scott J. Allen, Ph.D.'s podcast, Phronesis: Practical Wisdom for Leaders, episode 243: Seeing Around Corners. Peter and Scott discus Navigating Change and Building Community, Maximizing Family Capital for Impact, Managing Complexity and Future Cycles, and Leading in the Family Context. Click here to listen to the conversation.

The Synergy of Strong Networks and Personal Development In Part 2 of our Love & Legacy series, we explore The Synergy of Strong Networks and Personal Development. This will be done by examining 3 specific facets of this synergy that we at Boutique Matchmaking encounter every day: via Leveraging Educational and Professional Networks in Matchmaking, balancing career success with personal fulfillment, and encouraging openness and philanthropy. Leveraging Educational and Professional Networks in Matchmaking The networks established through educational and professional achievements pla...

Love & Legacy When managing multi-generational wealth, the intertwining of love and family legacy presents unique challenges and opportunities for parents curious about how they can guide or positively influence their children's marital choices. At Boutique Matchmaking, we help navigate this sometimes-tangled web, and guide these conversations to constructive solutions for all involved. This 3-part series, entitled Love & Legacy, and starting here with The Delicate Art of Parental Guidance in Love, will explore this fascinating dynamic in-depth. We’ll delve in...

Enjoy a recap of the 2024 Family Office & Wealth Advisor Forum by Erin Hulse, Founder of Deviate Consulting. DAY 1 | DAY 2 | DAY 3 Monday, July 15, 2024 | Day 1 Unlocking the Value of Time Capital John K. Coyle, Design Thinking Expert, Olympic Medalist, and Emmy Award Winner John emphasized the importance of time management, memory creation, and storytelling in shaping personal experiences and identity. He shared personal anecdotes and discussed the concept of the 'flow state' in memory retention and the need for challenge and growth in personal development. John also ...

By Peter Cunha, Director of Business Development Imagine having the power to be agile enough to dive deep into your endowment portfolio with just a few clicks. Diving deep within an endowment portfolio presents challenges requiring careful management and sophisticated tools. The complexity of asset allocation demands expertise and regular rebalancing. Performance measurement is another critical aspect, involving benchmarking and evaluating risk-adjusted returns to understand the portfolio's true performance. Managing liquidity is also challenging, especially when balancing cash flow needs w...

By Wendy McCoy, Chief Strategist As an early advocate for AI-enhanced solutions during my time at IBM, it's surprising to suggest that family offices carefully consider the deployment of cutting-edge AI tools. While these tools can certainly support lean staffing models managing vast amounts of data, it's crucial to assess the specific type of AI being implemented. Understanding how its model was trained, its impact, and the security measures in place is essential. AI in this context isn't new. Algorithms enabling machines to learn without explicit programming have been around since the ...

Read this if you are interested in artificial intelligence (AI). Everyone is talking about AI right now. With the technology accelerating so fast, companies and individuals are struggling to figure out the impacts: Will it be helpful for businesses? Will it be harmful for employees? Will it change the way we work? The thought leaders at BerryDunn have been exploring the technology and ways it may benefit our clients moving forward—both for accounting services and for broader consulting services. Here are five reasons we're optimistic about the future of AI in business. ...

Read this if you are a business owner. At BerryDunn, we deal with company valuation on a daily basis. For example, consider the value of the following two hypothetical companies. Anita owns A+ Manufacturing, a car parts manufacturer that employs 100 people. Roger owns a very similar company, D- Manufacturing, which also manufactures car parts and employs 100 people. These companies are both almost identical, and last year, they generated the same amount of revenue and income. A key difference, however, is in the management styles of the owners. Roger is extremely disorganized and...

Picture this: the sun-kissed waves gently lapping against the hull of your private yacht, the salty breeze whispering tales of undiscovered treasures. When seeking the epitome of opulence and adventure, there's nothing quite like a bespoke yachting holiday through azure waters. In recent years, the allure of traversing aboard a luxurious private yacht has captivated this time of year. This quintessential epitome of luxury travel offers not just unparalleled privacy and freedom but also the unique opportunity to explore the most secluded and breathtaking locales at one’s own pace. H...

One of the most distinctive features of family office capital is the personalized way each family looks at their investment objectives of risk, return and liquidity. This is particularly challenging in an era of rapid technological and informational change that requires balancing the digestion of new information with the reliance on timeless investing principles. During this forum, the FOX community’s most sophisticated family office investment professionals and Chief Investment Officers gathered to discuss the latest global investment themes, markets, economies, and more. The forum prov...

In the world of family offices, security concerns often take a backseat to wealth management and asset protection. However, when a crisis strikes, the need for a Chief Security Officer (CSO) becomes paramount. This case study delves into the remarkable journey of a new CSO who, thrust into a whirlwind of chaos, orchestrated a comprehensive security overhaul while maintaining the facade of normalcy within the family office. The Situation: The stage was set for an unprecedented challenge as the new CSO stepped into the role. A family office, that had never employed a CSO was plunged into t...

Peter Schatoff, Senior Relationship Manager According to a survey of KKR’s network of family offices, 52% of their portfolios will be invested in alternatives in 2024. As the alternative asset category continues to grow in size and scale within our client’s portfolios, it is only natural that family offices will continue to hire directly from hedge funds, private equity and real estate. In this article, we explore how the diffusion of employees and practices from different investment disciplines will impact the future state of the modern family office by directly increasing the ne...

At Boutique Matchmaking, we understand that comprehending and speaking the love language of loved ones can enhance bonds and relationships. Gary Chapman's principles of the 5 Love Languages provide valuable insights into how individuals express and receive love. But what exactly are ‘Love Languages’? Chapman describes the basic concept addresses how different personalities both give and receive love differently. By knowing your own love language and the love languages of those closest to you, you’ll create stronger relationships. Through learning to apply the Love Langu...

On December 13, 2023, the Financial Accounting Standards Board (FASB) issued its much-anticipated Accounting Standards Update (ASU) on accounting for and disclosure of crypto assets. This ASU is the first official guidance under US generally accepted accounting principles that addresses the accounting for and disclosure of crypto assets. Prior to issuance of this ASU, crypto assets were to be accounted for as indefinite-lived intangible assets. Such assets are tested for impairment annually and more frequently if events or circumstances indicate that it is more likely than not tha...

Get ahead of cyber risk. As phishing and ransomware attacks advance in efficiency and scale, the financial motivation that fuels cyberattackers is stronger than ever. Due to the level of wealth that is managed, family offices are a particularly attractive target. Families have paid up to $500,000[1] in a ransom payment to avoid lengthy shutdowns and restore their systems as quickly as possible. Even then, there’s no guarantee attackers will play fair. According to the UBS Global Family Office Report, only 44%[2] of family offices have cybersecurity controls in place. Now is the time t...

At Accordant Global Partners (AGP), we serve some of the most prominent families, corporations and business leaders in the world. We are our clients outsourced Chief Security Officer and operations team. Our Purpose is to ensure the families and organizations under our protection remain resilient to the unique and dynamic global risk landscape. We are not a security company, but we use our network of trusted providers, which includes security companies, to mitigate risks that we identify for our clients. Sudden or large changes in wealth can be a life-changing experience, opening new opport...

Prenuptial agreements are becoming increasingly popular and standard for couples, especially for wealthy families and individuals. These agreements, when implemented well with reputable legal experts, provide a relatively predictable method for asset protection and planning. However, navigating the conversation around prenuptial agreements can be sensitive, especially when involving family members and potential spouses. In our matchmaking practice working with ultra-high-net-worth families, we are seeing these discussions coming earlier to avoid friction later on. Here are the key takeaways an...

In December 2022, Congress passed the Securing a Strong Retirement Act of 2022, commonly referred to as the SECURE 2.0 Act. The SECURE 2.0 Act includes a multitude of provisions, many of which affect employer-sponsored retirement plans and individual retirement accounts. In this article, we here at BerryDunn want to specifically focus on changes to catch-up contributions for employer-sponsored retirement plans. Catch-up contribution parameters Currently, salary deferral catch-up contributions are available to participants who are age 50 or older (regardless of when they turn 50 ...

There’s no limit to the number of hours a family office can spend mired in PDFs and spreadsheets tracking private investments. Information on private investments is spread out among numerous data providers and fund managers, sometimes numbering in the hundreds. Each source presents data in its unique format, resulting in the tedious task of collecting and analyzing it, and consuming valuable time and resources through manual processing. So, issues like human error and outdated information are common occurrences in this process. And private equity investment reporting is often a qua...

With love in the air this Valentine’s Day, there’s no better time to be looking for a partner! The question remains however, where and how do you look and how do you do so safely? In the fast-paced world of dating apps, maintaining privacy is crucial, especially for high net worth singles. Here are some essential tips and practical steps to safeguard your personal information on dating apps in this digital age. Key Takeaways Limit personal information sharing to maintain your privacy and empower yourself Use a Google Voice Number for added privacy protection Enable Private/ Incogn...

In the ever-evolving landscape of finance and wealth management, family offices are experiencing a paradigm shift propelled by advancements in technology. Traditionally, family offices have been known for their personalized and comprehensive approach to managing the financial affairs of high-net-worth individuals and families. Today, technology is playing a pivotal role in enhancing efficiency, security, and accessibility within family office operations. The following are the areas we at Deviate Consulting believe family offices will be most impacted by technology in the upcoming year. Da...

We humans approach artificial intelligence (AI) with awe, excitement, and apprehension. It's no longer just a trendy topic discussed in boardrooms and technology labs. It's here beating World Go Champions, predicting the quaternary structures of proteins, inventing mathematical theorems, creating art, and helping our kids with homework. AI has become a visceral, emotionally charged reality, changing how we operate in almost every sector, including managing people's wealth and financial futures. Integrating AI into family offices and wealth management is inevitable, but the displacement of h...