The Handbook of Personal Wealth Management: How to Ensure Maximum Investment Returns with Security

241 Pages·2009·4.42 MB·English

by  Jonathan Reuvid

Hnbk Personl wealth man5 aw:Large workbook HBK FB 26/5/09 11:30 Page 1
5th
edition
Jonathan Reuvid was formerly an The Handbook of Personal Wealth Management, now fully updated for this fifth edition, offers Includes chapters on:
economist, an investment banker and authoritative, jargon-free advice on how to structure personal and business-related
an international corporate finances. Now more than ever, it is vital that investment returns are safeguarded and • portfolio return behaviour;
development consultant. He has maximized – but as the world economy enters increasingly turbulent waters, how can • hedge fund strategies;
edited and co-authored many titles this be achieved? • advisory services;
for Kogan Page, including Start Up • estate and succession planning;
and Run Your Own Business, The Handbook covers all aspects of personal wealth management in a clear and • commercial property review;
The Corporate Guide to Expatriate comprehensive way, including: • property and forestry investment;
Employment, Managing Business Risk 5th edition • inheritance tax, wills and estate
and Working Abroad. • approaches to portfolio management; planning;
• selective investment strategies; • how to invest in art and antiques;
THE HANDBOOK OF
• pensions planning and products; • investment in fine wines;
• real estate and forestry investments; • retirement income options;
• taxation issues and estate planning; • self-invested personal
• alternative investment vehicles; pensions.
PERSONAL
• pension alternatives.
The aim of this book is to provide anyone who has accrued sufficient capital for serious
investment with insightful and practical tips on how best to manage his or her personal WEALTH
affairs.
MANAGEMENT
The text also contains valuable analysis of the many less conventional investment assets
on the market, all offering diversity of choice for the serious investor. These include
property investment in the United Kingdom and overseas, forestry, art and antiques,
and fine wines. For those with an interest in philanthropy, there is a chapter from the
Charities Aid Foundation on developing a giving strategy, social investment and taking How to ensure maximum
advantage of tax breaks.
investment returns
The Handbook of Personal Wealth Management will help to ensure financial peace of mind with security
for anyone with the capital to be a serious investor.
Consultant editor: Jonathan Reuvid
ISBNN: 997788--00--7494--554466--0
Kogan Page Kogan Page US
120 Pentonville Road 525 South 4th Street, #241
9 7 8 0 7 4 9 4 5 5 4 6 0
London N1 9JN Philadelphia PA 19147
United Kingdom USA Finance and investment/
www.koganpage.com Personal finance/Art and collectables
THE HANDBOOK OF Consultant editor:
PERSONAL WEALTH MANAGEMENT Jonathan Reuvid
I
THE HANDBOOK OF
PERSONAL
WEALTH
MANAGEMENT
II
The Institute of Directors is the professional body for business leaders and we
have been representing our members for over 100 years.
The IoD is an influential network reflecting the full spectrum of international
business leadership from the largest public corporation to the smallest
family firm.
With such a diverse membership, a broad portfolio of benefits and services
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IoD membership can add real value to your business. Benefits include free
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For more information about the IoD, visit www.iod.com.
III
THE HANDBOOK OF
PERSONAL
WEALTH
MANAGEMENT
How to ensure maximum
investment returns
with security
5th edition
Consultant editor: Jonathan Reuvid
London and Philadelphia
IV
This book has been endorsed by the Institute of Directors.
The endorsement is given to selected Kogan Page books which the IoD recognizes as being of specific interest to
its members and providing them with up-to-date, informative and practical resources for creating business
success. Kogan Page books endorsed by the IoD represent the most authoritative guidance available on a wide
range of subjects including management, finance, marketing, training and HR.
The views expressed in this book are those of the authors and are not necessarily the same as those of the Institute
of Directors.
Publisher’s note
Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to
press, and the publishers and authors cannot accept responsibility for any errors or omissions, however caused. No
responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in
this publication can be accepted by the editor, the publisher or any of the authors.
First published in Great Britain and the United States in 2005 by Kogan Page Limited
Second edition 2006
Third edition 2007
Fourth edition 2008
Fifth edition 2009
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the
Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by
any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance
with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the
publishers at the undermentioned addresses:
120 Pentonville Road 525 South 4th Street, #241
London N1 9JN Philadelphia PA 19147
United Kingdom USA
www.koganpage.com
© Kogan Page, Jonathan Reuvid and individual contributors, 2005, 2006, 2007, 2008, 2009
The right of Kogan Page, Jonathan Reuvid and the individual contributors to be identified as the authors of this work has
been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
ISBN 978 0 7494 5546 0
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
The handbook of personal wealth management : how to ensure maximum investment returns with security / [edited by]
Jonathan Reuvid. -- 5th ed.
p. cm.
ISBN 978-0-7494-5546-0
1. Finance, Personal. 2. Rich people--Finance, Personal. I. Reuvid, Jonathan.
HG179.H2549 2009
332.024⬘01--dc22
2009003893
Typeset by Saxon Graphics Ltd, Derby
Printed and bound in Great Britain by Thanet Press Ltd, Margate
V
Introducing
A pension as individual
as you.
Adapts with you over time ✓
Flexibility to move
✓
investments
Option to self-invest ✓
Wide range of
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investments
The One from Winterthur offers you a pension with choice,
flexibility and control.
For further information please
contact your Financial Adviser
or visit www.winterthur-life.co.uk
Winterthur Life UK Limited
Registered Office: 5 Old Broad Street, London United Kingdom EC2N 1AD.
Registered No: 3116645 England & Wales. www.winterthur-life.co.uk
Winterthur Life UK Limited is authorised and regulated by the Financial Services Authority.
ADV0063A_0109/14317 JANUARY 2008
VI
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VII
Contents
Foreword: Miles Templeman, Director General, Institute of Directors xx
Contributors’ notes xxii
Introduction 1
Part 1: Portfolio investment 5
1.1 The eye of the needle 7
Philip Watson, Citi Private Bank
Adviser selection 7
1.2 Portfolio return behaviour 17
Philip Watson, Citi Private Bank
When things get on top: disciplined housekeeping 19; Implementation
and execution 20; Conclusion 23
1.3 Hedge fund strategies, recent performance and outlook 25
John Davey, Bestinvest
Hedge fund strategies 25; 2008 hedge fund review 29
1.4 Capital-protected and structured investments 35
Stephen Ford, Brewin Dolphin Ltd
Why invest in structured products? 35; How a typical structured product
works 37; Understanding the fixed-interest element 38;
The derivative strategy 40; Taxation 43; Charges 43; Conclusion 44
1.5 Advisory services 45
Mary Schwartz, Jonathan Binstock and Glenn Kurlander,
Citi Private Bank
Introduction 45; Family advisory services 45; Other advisory services 47
ឣ VIII CONTENTS __________________________________________________________
1.6 Jersey’s troika offering: the company, the trust and
the foundation 51
Christopher Scholefield, Viberts
What makes a foundation different? 53; How do foundations work in
detail? 53; Corporate status can avoid problems 54; Royal Court
supervision 55; Conclusions 56
Part 2: Real estate and forestry 57
2.1 UK commercial property review 59
Tim Bowring, Citi Private Bank
Why high-net-worth individuals invest in real estate as an asset
class 59; Who invests in which type of real estate structure? 60;
Typical ownership structures 60; Why UHNWs invest in the UK
commercial property market 62; Current market conditions 63;
Causes of the downturn 64; So what next and where do the
opportunities lie for HNW investors? 66
2.2 The overseas property market in the economic downturn 69
James Price, Knight Frank LLP
A ‘nice to have’ 69; Markets within the market 69; Which buyers are
most active? 73; Outlook 74
2.3 Current opportunities in forestry investment 79
Alan Guy and Alastair Sandels, Fountains Plc
Introduction 79; The nature of the forestry asset class 79; Special
qualities of forestry investment 80; Types of investment in the forestry
asset class 82; Risk–return profiles of forestry investments 84;
New revenue sources from forestry 85; Summary 85
2.4 Risks and direct investment in forestry 87
Alan Guy and Alastair Sandels, Fountains Plc
Risks in forestry investment 87; Direct investment 89; How UK and US
forestry has performed in recent years 91; Tax treatment of forestry in
the UK and United States 92; Summary 92
2.5 Timber investments in South-East Asia 94
Guy Conroy, Oxigen Investments
An ethical way to watch your money grow 94; Timber outperforms the
stock market 96; Sri Lanka: the natural forest 97; Malaysia: ideal for
teak 98; The science of trees 99; Agroforestry: a new ethical
investment 100; What investors want to know 101; Can the experts all
be wrong? 102
IX
“
Where can I find an international wealth
manager supported by a high quality
”
professional infrastructure?
Many international wealth managers have established a presence in the
Isle of Man to service private clients.
The Isle of Man benefits from a strong reputation based on quality and
security and is supported by professional advisers both locally and from
around the world.
The Isle of Man is the natural choice for private clients.
To find out how the Isle of Man can enhance your personal and business
wealth, please contact Isle of Man Finance on [phone].
www.isleofmanfinance.gov.im
You can in the Isle of Man