Working with Families
Our experiences of working with high net worth family, family office with a family business, family office with no family business, family business and the next generation members of families over the years, gives us a unique advantage in this space to advise our clients on the key issues that they might encounter in the future or are currently encountering.
“Six out of ten families lose their wealth by the second generation. Nine out of ten families by the third.”
“Only 5% of the failure is due to poor financial planning, taxes and investments.”
This is the result of many factors, but can mainly be attributed to poor communication, lack of trust and planning, misunderstanding of individual family members’ ambitions, abilities and expectations.
Where do we start?
Succession and a family strategy can be such a tricky and sensitive issue, that working with advisers such as Sandy Loder can be enormously helpful, as he can call upon his own personal experiences.
We often get asked to advise when a client might be asking themselves such questions as:
“What are we trying to achieve with our Family Office?”
“How do I ensure that the family wealth will survive and grow at the same rate as my family through multiple generations?”
“How do I avoid disputes among the various members of the family?”
“What will be the legacy of the family’s success?”
“What are the risks with our strategy?”
“Please can you help with one of my children?”
Manager Selection and Investment Monitoring Services
At AH Loder Advisers, we are experienced at finding suitable wealth managers, whether clients are changing an existing portfolio manager or engaging with a new provider.
Currently you may be experiencing the following:
- Unknown or high costs.
- A lack of control over your aims or objectives.
- A loss of confidence in the manager.
- A lack of clarity or empathy.
Why use us?
We are focused on finding appropriate long-term investment solutions for our clients.
- We have an independent and effective process.
- We will help control or eliminate unnecessary costs.
- We can monitor investment performance on an on-going basis (as an additional service).
- We try to protect and quantify investment risks.
- We ensure compliance from a Trustee’s or Client’s perspective.
- We can carry out attribution analysis* on investment managers.
- We can aggregate data.
- We focus on the delivery of your aims.
- We will also carry out a unique Risk Assessment of the Investment Managers analysing the managers personal decision-making attributes.
Once we understand what your investment aims and goals are, whether as a Trustee, High Net Worth Individual or a Family, we will then arrange the following:
- Put forward a suitable list of managers who have demonstrated they can meet the client needs.
- Organise the selection process, from agreeing investment goals through to appointment.
- Carry out full due diligence and audit procedures on each manager/firm.
- Clearly set out your mandate, risk and return parameters and aims.
- Agree the most suitable performance benchmarks.
- If a Trustee, put in place a properly constituted Investment Policy Statement as required by law.
- Advise on the most suitable Tactical and Strategic Asset Allocations.
- Negotiate all fees and costs.
- Agree investment policy and accepted levels of risk.
- Attend manager meetings with clients to ensure their adherence to agreed investment guidelines.
*Attribution analysis is performance-evaluation tool used to analyse the ability of portfolio and fund managers. It uncovers the impact of the manager’s investment decisions with regard to overall investment policy, asset allocation, security selection and activity. So we are able to analyse any claims made by an investment manager regarding their ability to make a positive impact on returns.
Please call Sandy Loder on +44 207 042 9290 or email him on firstname.lastname@example.org for more details or to arrange a meeting.
Family Office Start-Up
We advise on the design and start-up of a Family Office.
We do this by creating a bespoke infrastructure to protect family wealth by implementing the most appropriate strategy and culture and securing consensus on the family’s values and objectives.
We also conduct extensive Strategic Audits for existing Family Offices and Family Businesses.
Family Office Audit
We work with a range of global Family Offices who require us to meet with family heads and family office executives to conduct regular audits of performance, culture, behaviour and objectives of the office.
These audits can challenge and validate the objectives and strategy to better enable the Office and the Family to meet their aims and objectives.
With our track record over two decades of setting up and working within large Family Offices, and acting as Trustee, we have unparalleled experience in this field.
Culture, Behaviour & Decision-Making
We help our clients significantly improve their human behavioural performance whether that is at the organisational, department, team or individual level within the Family Business or Family Office.
Every Family Business or Family Office has ambitions to be successful over an extended period. Quite often the pathway to success is not always smooth.
We look to assess the culture, behaviour, effectiveness and decision-making to improve the outcomes.
For instance, teams such as executive boards or family councils working well together will see qualitative decision-making performance improvements of more than 50%.
Our Succession Planning process includes reviewing and presenting a balanced, fair plan across the family structure to minimise discontent and future dispute. We prepare, train and help implement the next generation for succession.
One of the key challenges that families face is the succession issue. The smooth transition of substantial wealth, or of a Family Business or a Family Office to the next generation based on status, merit and practicality can be a tricky process. Doing this with the agreement of all parties concerned is extremely complicated and can take time to find the right solution. This is especially true when taking over from an entrepreneurial parent. Any transition needs to be planned and approached with as much preparation as possible to maintain stability and continuity.
We will work with, guide and facilitate the family to help define the roles and responsibilities of its members, voting rights, share ownership, board membership, family meetings and succession management to name some of the key components.
Owning a family business, a family office or having a large family brings many potential issues, challenges and even occasional conflict. Ensuring the right decisions are made within a family business or office for the mutual benefit of family members can sometimes require helping to develop the main values and goals the family wishes to pursue.
In our experience – although the process can take some time – it benefits the family in the long term and aims to eliminate any acrimonious fissures between family members in the future.
Next Generation Development
We provide mentoring and coaching to individuals on how to cope with the responsibilities and challenges of life either within the Family Business/Office or not. We advise them on anything from inheriting wealth and managing money, to navigating the precarious situations that life can throw at us (such as preparing for a job, or fulfilling the entrepreneurial wish to start a new business).
“If the next generation is to face the future with zest and self-confidence, we must educate them to be original as well as competent.”
Coaching is more than just information sharing, it is about personal development and learning in a very broad sense about oneself, one’s duty and one’s values.
This, in time, gives the younger generation the confidence to communicate effectively with both family members and the outside world as a whole. They will be armed with a personal resource of courage and integrity to make rational decisions that both protect the family wealth and inspire others.
We have helped over 500 clients some of whom were lacking in confidence, had a low self-esteem, were not self-reliant, suffered from dyslexia, OCD, drug abuse or just lacked direction and guidance to name but some of the issues we have seen (see below).
Our annual Arctic Dogsled Expedition across Norway and Sweden is probably one of the most amazing and unique experiences that you will probably ever do. You will come away with a huge sense of achievement, travelled across some stunning and remote landscapes and created a bond with both the dogs that are pulling you, but also the rest of the group. You will also have learnt new skills and understood how team dynamics works. This trip is done in April every year.
We run bespoke workshops & programmes for our clients. These range from life and business skills workshops to culture and behaviour workshops. We also run working lunches discussing the issues of Succession, the Next Generation, Family Offices or Cultural norms in family organisations or businesses.
The clients requesting these workshops range from Families, Family Offices and Family Businesses to Service Providers to such as Banks and Wealth Managers.
For instance, we have worked with Close Brothers Asset Management, Edmond De Rothschild, Stanhope Capital, Kleinwort Benson, Fleming Family & Partners, plus a range of global Family Offices and Families.
We do not disclose which Families or Family Offices we have worked with or where in the world they are based.
Sandy Loder is frequently asked to give talks all around the world on Family Offices, Succession and Development of the Next Generation.
If you are interested in booking to speak at a family gathering, a workshop or conference, please get in touch or call the office on +44 (0)20 7042 9290.