A strategy is needed if family wealth is to be protected and enhanced from generation to generation. We can advise on creating a family organisation to assist you in formulating a strategy, implementing it and communicating it to the rest of the family. It may be helpful to draw up a family constitution setting out the governance arrangements to promote family harmony and manage changes in your wealth and your objectives.
The Family Office Services team can also assist with one other management function important to many large families: structuring their philanthropic activities. Creating charitable foundations, defining their objectives, managing them effectively and involving the next generation can be a source of great satisfaction for wealthy families.
We can assist in devising an Investment Policy Statement (IPS) which sets out for the family how your investment portfolios will be managed, supervised and adapted as circumstances change. Pictet can help you to establish a strategic asset allocation which meets your objectives and risk preferences. We can also advise on selecting third-party managers, monitoring their performance and, if necessary, amending the strategy with you.
Finally, we help you draw up an Operating Guide (OPG) for the family’s investment operations. This spells out the procedures for dealing with advisors or other people running day-to-day operations. It also sets out the arrangements for safeguarding assets, best achieved for a multimanager investment strategy by appointing a global custodian. Asset administration tasks include collecting income, managing cash, settling trades and other functions. And timely reporting on the performance of your family wealth is essential in evaluating your strategy and your advisors.