I S S U E 7 5 | 2 0 1 9 SU P P LE M E N T


CONTENTS 02


FROM THE EDI TOR Editor Nicholas Moody


Deputy Editor James Beech Senior Writer


Susan Lingeswaran Art Director


Kylie Boyd Contributor


Alison Ebbage


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A FINE BALANCE I


INFOGRAPHIC


GLOBAL FAMILY OFFICE REPORT 2018


s it possible to satisfy the dual aims of investment performance and social purpose at the same time? This debate has raged ever since the term ‘impact investing’ was first coined in 2007 at a meeting convened by the Rockefeller Foundation to describe


investments made with the intention of generating financial return plus positive social and/or environmental consequences.


For many years the two goals were seen as mutually exclusive— investment for financial returns in one camp, and investment for social returns in another. Yet the tide is turning. For the first time, the latest edition of The Global Family Office Report has included sustainable and impact investing in its main investment sections—a sign of its shift from an outlier investment ‘lens’ to a recognised asset class. This shift, in part driven by greater influence from next-generation family members, is just one of the different areas we examine in our annual family office supplement that starts off with a data snapshot on pages 2-5.


A return to healthy double-digit investment (15.5%) was one of the headline findings from the latest report, as families saw their allocations to higher risk, more illiquid investments drive the best returns in five years. We examine investment performance in depth alongside other key findings from page 6, including millennial-driven impact investing and succession planning, in this 18-page special feature on the report. Amid this air of optimism we also note some words of warning around over- exposure to these more illiquid assets and glacial progress on succession.


It was American author Mark Twain who helped popularise the saying: “There are three kinds of lies: lies, damned lies, and statistics”, yet there are some statistics that are hard to cast aside. The fact that 90% of wealth is made and lost by the third generation is sobering. That’s why the focus of our last section in this year’s supplement, starting on page 24, is how to avoid becoming another succession statistic.


Nicholas Moody Editor nicholasmoody@campdenwealth.com


ISSUE 75 SUPPLEMENT | 2019


SHIFTING ASSETS 06


RESEARCH


An 18-page overview of the fifth annual Global Family Office Report where families have posted buoyant returns, are thinking more about purpose, and noting the rising influence of the next generation.


Discover the changes to the average family office portfolio and how many are opening offices in other parts of the world.


THE LONG GAME 24


SUCCESSION


We coin a new term, the ‘Vanderbilt rule’, and examine how to avoid the curse that sees 90% of wealth made and lost by the third generation.


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