The recently signed “Phase One” trade deal has led to some optimism surrounding U.S.- China relations. That said, much of the conflict between the two countries can be traced to China’s desire to be a technological power. China is unlikely to cede its ambitions, suggesting there will be an altered landscape moving forward regardless of the trade war outcome.BackgroundThe “Phase One” trade deal has been viewed with skepticism by some analysts. The deal mostly left existing tariffs in place, and there are doubts whether China can actually deliver on its promised $200 billion of co...

The world watched in disbelief last spring as fire ripped through the cathedral of Notre-Dame de Paris. The spire and roof were destroyed, but the structure’s stone ceiling contained the collapsing roof, sparing the interior from total destruction. Despite the catastrophic circumstances, an astounding 90% of the irreplaceable works of art within the cathedral were saved due to a thoughtful and seamlessly executed emergency plan. You might think that only institutions like the cathedral need art-focused emergency plans, but not so. In my role as an art advisor for a major insurer, I have a...

Previously published in Family Business Magazine Dramatic change is on the horizon, and multigenerational businesses are facing critical transition issues as ownership in private companies and substantial wealth are transferred between generations. Because few families are ready for these transitions, the family office will play an increasingly important role in supporting the family. Family Office Exchange (FOX) has worked closely with families, family office executives and advisers for more than 30 years. According to the 2019 FOX Family Office Benchmarking Report, the rising gener...

In November 2019, a Patek Philippe “Grandmaster” watch fetched $31 million at Christie’s Geneva. This result was more than 10 times the pre-sale estimate, establishing a new world record for a timepiece at auction. It smashed the previous record for a wristwatch, set in 2017, when Phillips sold a Rolex Daytona owned by Paul Newman for $17.8 million. It also eclipsed the timepiece auction record of $24 million, set in 2014 by Sotheby’s Geneva for the 1932 Patek Philippe “Henry Graves Supercomplication” pocket watch. With two reversible dials, five chiming modes, and 20 other special f...

Revisit 2019 content from Family Office Exchange (FOX) as we celebrate 30 years of providing members with objective guidance, peer exchange, and continuous learning.

Owners of historic homes often become guardians of the meticulous craftmanship of bygone eras. But sometimes there are purposeful reasons why “they don’t make them like they used to.” While these residences may be less likely to succumb to perils that emerge in today’s cookie-cutter construction environment, they also bring a precise set of inherent risks. Fortunately, there are ways to modernize older properties while upholding historic integrity.As a risk manager who specializes in historic home preservation, I’ve identified the top five threats that come with age: Water FireW...

The holidays provide a perfect opportunity to share family legacy through stories of events, family fun and family hardship. These anecdotes help us feel connected, convey our legacy, generate pride and impart lasting life lessons. Opportunities to share family legacyTraveling, shopping, cooking, taking a walk or watching a sporting event all present opportunities to tell your children and grandchildren stories that convey family values in a way that isn’t lecturing. Sharing a memory about life “back when” can get them laughing and asking questions, setting the stage for you to demo...

When exploring the landscape of culture in today’s workplace there is a company that stands out. Recently featured in a FOXCast, Mark Galante, President, Field Operations, PURE Insurance, discussed the qualities of PURE’s outstanding culture. One notable element of their culture is PURE’s Women’s Leadership Council, a group formed to mentor high potential female employees and guide them towards leadership. For a closer look at how this program drives talent engagement, below is a conversation FOX recently had with one of its leaders, Caitlin Rascelles.PURE (Privilege Underwriters Reciprocal Ex...

In this episode, Todd Kellerman and Tim Wray, cofounders of V3 Limited, discuss lessons learned from the past and offer some insight into current family office investment trends. Todd and Tim are now focused on working with financially successful families to align investments with values and take advantage of direct investing opportunities.V3 Limited sponsors the FOX Direct Investing Network.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Private Equity Fund and Direct Investing in Today's Market Your browser does not support the audio element. Below is a transcript from the...

Whether motivated by business or pleasure, economic opportunities or simply the weather, today’s high net worth individuals are increasingly becoming global citizens. According to one survey, 43% have lived in two countries or more, and a full one in five has lived in three or more countries. And that is trending upward, with the majority of respondents expecting that their children will live in more countries than they themselves have done.iBy the time you consider homes in multiple countries, and the vehicles, contents and artwork that go with them, from an insurance standpoint, things are g...

In this episode, Jacqueline Valouch, head of philanthropy at Deutsche Bank Wealth Management talks about the role of philanthropy in onboarding the next generation, creating successful partnerships within your family, and even working with other families to make a larger impact.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Philanthropy and Next Generation Success Your browser does not support the audio element. Below is a transcript from the conversation:KC: Can you start by describing the type of family that you typically work with?Jacqueline Valouch: Sure. So, the realit...

In this episode, we pick the brain of Robb Lanham, Chief Sales Officer at HUB International. In his role, Robb works with family offices to develop creative solutions for complex risk.And speaking of complex risk, losses due to natural disasters are on the rise worldwide and the insurance world has had to dramatically shift in response to recent catastrophic events. He explains why, for the first time, we're seeing the cost of insurance driving the home buying process.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Can we Offset the Cost of Living in Paradise? Your browser does ...

In this episode, we sit down with Karen McNeill, Head of Family History at Ascent Private Capital Management of U.S. Bank, to discuss her fascinating role in researching family histories as part of a comprehensive wealth planning platform. Here, she discusses how applying historical knowledge to family culture can play an enormous role in supporting family preservation and success.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Historical Imagination for Family Preservation Your browser does not support the audio element. Below is a transcript from the conversation:KC: Speak...

In this episode, Tina Milligan, Managing Director at BMO Family Office, part of BMO Wealth Management, illustrates the importance of family meetings.With over 20 years of experience working with family offices, Tina knows that holding family meetings and having open lines of communication are vital elements for families who are connected through wealth. Here, she covers family meeting guidelines suitable for different family needs. BMO Family Office is a FOX Thought Leaders Council member.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Family Meetings are Where Expectations are S...

Every year at this time I get questions from our members about shared family vacation homes. "How are other families scheduling usage?" "How are expenses shared?" "How should we handle family members that can no longer support their ownership expenses?" And the list goes on and on. Many wealthy families see shared property as a good way of encouraging family unity and preserving their legacy, and tax laws certainly make gifting real estate advantageous. But sharing property among multiple family members is often a delicate balancing act that requires careful planning and a shared commitme...

Most people feel honored when they are tapped to serve as trustee of a family trust. It is an important leadership position as well as a powerful role in managing a family’s wealth. The trustee also has significant influence over the long-term well being of the beneficiaries. It is a role that is not to be taken lightly. The responsibility is significant, and there’s a lot more to the job than meets the eye. A new trustee needs to frankly ask himself or herself the following questions:Are you prepared to take legal ownership of all assets of the trust?The trustee is re...

The yacht insurance market is dramatically changing in terms of available capacity and cost. As vessels get bigger and more sophisticated, clients worldwide are experiencing premium increases. In this episode, we sit down with Sean Blue, Global Head of Watercraft Insurance at AIG Private Client Group, a division of the member companies of the American Insurance Group, Inc. (AIG), to get caught up on how yacht-owning families can plan ahead to mitigate the overall cost of risk.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Managing Risk for Yachts, Megayachts, Superyachts, and Gi...

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At Family Office Exchange (FOX), one of the questions we hear most frequently is:“How many single family offices are there?”Unfortunately, there is not a clear answer. There is an older, often-quoted statistic of between 3,000 and 5,000 single family offices in the United States – but the origin of those figures is unknown. More recently, Family Wealth Report estimated that there were about 6,000;1 Campden Wealth puts the figure at 7,300.2With such widely varying numbers, and no single source to verify the estimates, the question becomes how to accurately “guesstimate” this number. One way to ...

What do our future family leaders need to learn? When should family education begin and how formalized should it be? How will we adequately prepare the rising generation for the lives they will lead and the roles they will play? Sound familiar? These are the common questions I hear from many of our member families lately. The questions are both simple and complex. The answers are the same. What do our future family leaders need to learn? Has your family gone through an exercise, perhaps at a family meeting, and had this conversation? Have you defined, together, what is mo...

Over the past 40 years, creating and maintaining financial security has become more of a personal endeavor. Yet, despite record aggregate levels of US wealth, large portions of the population appear quite vulnerable. Avoiding late-cycle overconfidence as it relates to both spending and investment decisions is key.When Congress passed Section 401(k) of the Revenue Act of 1978 they began a revolutionary risk-transfer as it relates to retirement savings. With employers increasingly embracing the cash flow predictability of defined contribution plans, the percentage of private-sector employee...

Recently we sat down with FOX member, Steve DelGiudice, a technical specialist with AIG Private Client Group, to get an understanding of what ultra-high net worth families should keep in mind when constructing a new home and efforts they can take to protect their loved ones and most valuable possessions. FOX: What is a resilient custom home?Steve DelGiudice: We use this term for homes with state-of-the-art techniques to keep them standing when floods, winds, or fires strike. Resiliency generally refers to a building’s ability to withstand natural disasters such as hurricanes, earthquakes,...

Families that have accumulated significant assets want to know how to best prepare the “rising generation” to help them maximize the benefits available to them, while also minimizing the unique challenges that occur when navigating the world of wealth.Younger family members may have different approaches when it comes to family wealth. Understanding where these approaches come from is essential when creating an effective family education program. Consider these family members to be on a continuum with engaged learning in the middle. People who fall in the middle are interested and eager to lear...

A family vacation home is meant for families to spend time together, create new memories, and watch their children, grandchildren, and possibly great grandchildren grow. The home may also be a wise investment. But for most families, it’s first and foremost a place for enjoyment. Yet as many families find out, the very space designed to serve as a family sanctuary can quickly become stressful as disagreements over the specifics of how it will be enjoyed arise. When first generation owners begin to create a succession plan for the home, these disagreements often intensify. Vacation homes an...

What is the difference between a life insurance review and a life insurance audit? In this episode, Steve Herlihy at Wellspring Associates sheds some light on why it might be time for your family to consider a life insurance audit, and outlines some life insurance basics that younger-generation family members should know.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Is it Time for a Life Insurance Audit? Your browser does not support the audio element. Below is a transcript from the conversation:KC: So, life insurance. I know a recent conversation that FOX had with Wellsp...