How families can solve the Gordian knot of wealth
Grégoire Imfeld, Senior Relationship Manager at Pictet’s Family Office, gives insights on how to setup a sound governance on Family Business Wiki, a premier online resource for family business knowledge.
The elaboration of a successful financial governance structure assumes that the family governance architecture is established and sound. Clearly setting a family strategy which defines values and objectives associated to a family business plan is important. It then provides the prerequisite information for the creation of an investment policy which should translate the family objectives into financial objectives. Family objectives depend on where the family stands in the wealth cycle, whether it is creating or preserving its wealth. One key advantage a wealthy family has is that its financial objectives can be set on several generations. That way, financial turmoil and periods of increased market volatility can then better be endured. This unique characteristic shapes choices of asset classes.