The Role of the Lipitz Family Wealth Manager<br />Annual Meeting 2010<br />
Ocean Assets High Level<br />Vision and Mission have a profound impact on goals. Done correctly, it affects  fundamentally...
CIO Focus<br />A Chief Investment Officer focuses on investments policy and investments. That has been my principal focus ...
The Importance of Leakages on Results<br />Inflation, taxes, cost of the office and what we spend on our lifestyles, I’ll ...
Role of the Wealth Manager<br />In order to better address the key issues presented by other parts of the cycle, we propos...
Functions of the Wealth Manager<br />Thinks strategically and broadly about family objectives and problems.<br />Looks to ...
Nepotistic Advantage<br />Our family can only earn adequate returns in the long run by having an extraordinary financial r...
Measures of Success<br />Should be consistent and defined in advance.<br />Should include performance after taxes and othe...
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  • Reformulating our Mission and understanding the investment implications of this is work we will need to accomplish in the next 6-12 months.
  • For instance, as I look at the after-tax returns of our hedge funds, some stand up well, but others are apparently not worth the extra cost, and diminished liquidity.On the estate side, to the extent I can stay on top of latest thinking , we can save the family millions just by being proactive, no investment success necessary.Finally, discovering the link between Mission and investment policy relly opened my eyes to a greater need.
  • Costs of the office have been lowered from ____ to ___ since 20__ . Largely by ….
  • Discuss Allvision, Jetro, Broadway
  • to protect us against conflict of interest and the distraction of other equally important client relationships
  • Allvision is our key endeavor currently in this critical area of wealth enhancement.
  • Wealth manager role external

    1. 1. The Role of the Lipitz Family Wealth Manager<br />Annual Meeting 2010<br />
    2. 2. Ocean Assets High Level<br />Vision and Mission have a profound impact on goals. Done correctly, it affects fundamentally what you spend and what you invest in.<br />For instance, a mission to maintain spending across all generations would imply very aggressive investments and a structure to keep the family united even as it grew very large over time and spread out.<br />Whereas a Mission to just maintain spending for Mom and Dad through their lifetimes and just an educational component for the rest of the family with the occasional tag-a-long investment would mean fairly conservative investments. <br />Results tends to have a profound effect too. Bad results tend to scale back the Vision. Great results tend to make a family more ambitious.<br />We’ll talk more about Vision and Mission at the family meeting.<br />
    3. 3. CIO Focus<br />A Chief Investment Officer focuses on investments policy and investments. That has been my principal focus these past ten years , but over time I have worked more on other areas as I have found they drive our ultimate results profoundly, perhaps even more so than investments. I’ll elaborate on this when we get together. <br />
    4. 4. The Importance of Leakages on Results<br />Inflation, taxes, cost of the office and what we spend on our lifestyles, I’ll call “leakages.” They can have a profound impact on results. <br />You’ve been hearing so much about Commodore and estate planning over the last few years. These two in particular are an attempt to control taxes. This has come about in part because of an emphasis wehave put on saving the money we have before we talk about earning a return.<br />You’ve also heard a great deal about inflation protection because in a very high inflation world, our whole mission can be destroyed in a few short years.<br />Expense of the office and lowering spending have also been a focus for all of us. <br />
    5. 5. Role of the Wealth Manager<br />In order to better address the key issues presented by other parts of the cycle, we propose to create the role of Wealth Manager, over the course of the transition, which is the Chief Administrator but also the supervisor of all things related to family wealth.<br />[Family Does This Together ]<br />[WM still drives highly opportunistic investments. Family bring their specific human capital to private , active businesses.]<br />[Primary focus of outsourced CIO]<br />
    6. 6. Functions of the Wealth Manager<br />Thinks strategically and broadly about family objectives and problems.<br />Looks to prevent future wealth destroying problems before they exist.<br />Makes the well-being of the family a regular part of the thought process—not just in a crisis.<br />Ensure transparency of all those serving the family.<br />Strive for the clearest and most candid communication to the family.<br />Frames family conversations around critical objectives.<br />Selects, oversees and evaluates all service providers and advisors and ensure their compensation is adequately aligned with the interests of the family.<br />Ensures that all providers and advisors coordinate their work for best results and efficient delivery of value to the family.<br />Guarantees the setting of clear financial objectives and proper reporting of results.<br />Seeks solution to family wealth problems that are as simple as they can be but no simpler.<br />Highlights high risk activities or underperformance of our assets.<br />Works to exploit our nepotistic advantages<br />It isn’t the investment role, which can be done by outsiders, but rather those roles that can only be done by a family member. These are listed in the bullets. These are functions that we would trust usually only want a family member performing or ultimately supervising.<br />[See next page]<br />
    7. 7. Nepotistic Advantage<br />Our family can only earn adequate returns in the long run by having an extraordinary financial result (e.g. Meridian) in approximately each generation.<br />We are most likely to achieve this by investing together in a business which we control and to which we bring extraordinary advantages by virtue of a careful exploitation of our non-financial capital.<br />This involves the regular participation and investment of all family members. It may be the most important responsibility of the members of Ocean.<br />This means thinking, along with your usual analysis, of the potential to Ocean of all your social and business contacts and understanding what other members bring to the table too. We’re one family that is stronger and greater than the sum of its parts when we work together.<br />Having structures in place, as we do already, so that all family members share in both the risk and good fortune led by one family member is key. Without this, the extended family eventually disintegrates.<br />In order for a family to sustain itself as a family, it has to cultivate and aggressively take advantage of the skills, experiences, and web of personal relationships that are the key non-financial capital of the family. <br />
    8. 8. Measures of Success<br />Should be consistent and defined in advance.<br />Should include performance after taxes and other costs and clearly show whether or not we are on track.<br />Should certainly include these goals:<br />Everyone feels cared for and cared for equally; and,<br />We create a stable, useful structure that survives multiple generations and bring the members of our extended and expanding family closer together.<br />How will we know we are on track?<br />

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