The document provides perspectives from experts on the economic and financial challenges that may be faced in 2016, including disappointing global growth, risks from China's economy, the European refugee crisis, and potential financial instability reminiscent of 2008. It also discusses how wealthy families are preparing by enhancing home security amid concerns about rising social unrest during economic downturns. Additionally, it outlines the differences between bank bailouts and bail-ins, and suggests families consider their exposure under bail-in regimes.

1. www.pangeafamilyoffices.com
PANGEAP R I VAT E FA M I LY O F F I C E S ™
Quarterly
2016 Q1
2016 will be a year
of economic & financial challenges, globally.
We see opportunity
to prepare.

2. What some of the most informed
people in the world have said about
2016:
“...global growth will be disappointing and
uneven in 2016.” - Christine Lagarde, Head of the IMF
“We are now just one big shock away from a global downturn, and the
next one seems most likely to originate in China, where heavy debt,
excessive investment, and population decline are combining to undermine
growth, while relatively low-debt countries from Eastern Europe to South
Asia look better positioned to weather the inevitable next turn in the cycle.”
- Ruchir Sharma, head of emerging markets equity and global macro, Morgan Stanley Investment Management
“...I am still not sure that investors globally have
adequately thought through what market
spillovers the European refugee crisis
could trigger over the coming year.”
- Rebecca Patterson, chief investment officer of Bessemer Trust
“...it’s unlikely that China’s financial industry is headed for
a crisis because most of the country’s institutions are
backed by the government. Should any systematically
important financial institutions have any problems, we
believe that the government will step up to rescue them.”
- Yang Zhao, chief China economist at Nomura Holdings
“When I look at the financial markets there is
a serious challenge which reminds me
of the crisis we had in 2008.” - George Soros
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PANGEAPrivateFamilyOfficesQuarterly:2016,Q1

3. ”
- Declan Winston Ramsaran, Managing Director
PANGEA Private Family Offices™
First off, if you are expecting this
quarterly to tell you all about the
juicy investment opportunities
available to your family in 2016,
you may be disappointed
because the subsequent para-
graphs are not going to discuss
that information.
Although you may glean some
insight from the views expressed
herein, our Q2 edition will con-
tain more financial and econom-
ic information. The opportunities
we are referring to in this article
are qualitative in nature - but
they do come with a price tag
that you determine.
There is no doubt that 2016
will be a year of economic &
financial challenges, globally. In
our opinion, 2016, represents
an opportunity for your family to
prepare. Our view is that, if you
havent already started doing so,
you should discuss repositioning
your family’s wealth strategy to
thrive in the coming years. By
now you should be aware that
at PANGEA, we define wealth
differently than most.
At PANGEA we recognize that
wealth transcends dollars and
decimals to also include the
human elements of personal
well-being, family intellectual
capital and family & community
legacy. What follows in no way
represents advice, rather it is a
www.pangeafamilyoffices.com
...very powerful people see
increasing evidence of social
instability and violence.
curated composition of perspec-
tives of what some of the best
informed, wealthiest families in
the world have already done to
prepare in advance of the finan-
ical and economic shifts on the
horizon.
No place like home
How secure is your home? And,
why would we ask you such a
question? Those who are pay-
ing attention to the correlation
between challenging economic
times and social unrest already
understand that the next major
financial/economic crisis will
likely trigger an unwelcome
response from those who have
fallen out of the middle-class
and those in economically
marginalized groups. This reality
is a top concern for families of
means.
Robert Johnson was a former
Managing Director at Soros
Fund Management and the
current President of the Institute
for New Economic Thinking and
a Senior Fellow & Director of the
Global Finance Project for the
Franklin and Eleanor Roosevelt
Institute in New York. At a World
Economic Forum session in Da-
vos last year, Johnson expressed
concern about the growing per-
ception of unequal wealth distri-
bution that resulted in the Fer-
guson and Occupy Wall Street
protests. In Davos, Johnson was
quoted as saying that, “...very
powerful people are telling us
they’re scared...they see increas-
ing evidence of social instability
and violence.” Johnson is not the
only well placed person shar-
ing this perspective. Canadian
protests were also arranged
in Calgary, Vancouver, Victoria,
Ottawa, Montreal, Nova Scotia
and Newfoundland, according to
the website, Occupy Together.
Also, the G20 Summit protest in
Toronto resulted in violence that
led to over 400 arrests. Several
european countries, includ-
ing Greece and Belgium, have
suffered the ire of economical-
ly marginalized groups during
anti-austerity protests that
turned violent. This is why we
asked earlier, how secure is your
home?
Back at home in North America,
familes of means are prepar-
ing. Chris Pollack, president of
Pollack+Partners, a design and
construction advisor based in
Purchase, N.Y., says that while
security has always been a
given in building homes for his
ultra-high-net-worth clients, the
spending for home defense has
increased markedly over the last
five years. Ask yourself, why?
Sources can be found on the last page of the quarterly.
“From where we stand,
we see opportunity to
prepare.
PANGEAPrivateFamilyOfficesQuarterly:2016,Q1

4. The term bail-out, as it relates to
the 2008 global banking crisis,
is one that you may be familiar
with. A bail-out is when outside
investors rescue a borrower by
injecting money to help service a
debt.
You likely remember the U.S.
Treasury Department’s high-
ly controversial, $500 billion
Troubled Asset Relief Program
(TARP). TARP funds used to res-
cue systemically important finan-
ical institutions who, as a result
of the 2008 finanical crisis, were
on the verge of collapse. As of
December 5th, 2008 the TARP
had balooned to $1.2 trillion.
That’s not a typo. One trillion, two
hundred billion dollars was the
amount of emergency borrowing
by U.S. finanical institutions from
their federal government. This
was the bail out.
U.S. finanical insitiutions weren’t
the only ones bailed out by their
nation’s government. Canadian,
European, Asian, and Austrailian
finanical instutions were bailed
out in some form - either direct-
ly or indirectly. The Canadian
Centre for Policy Alternatives
conducted a study that revealed
Canada’s banks received $114
billion in cash and loan support
from both the U.S. and Canadian
governments during the 2008-
2010 financial crisis. The study
www.pangeafamilyoffices.com
estimates that at some point
during the crisis, three of Can-
ada’s banks—CIBC, BMO, and
Scotiabank—were completely
under water, with government
support exceeding the market
value of the bank. Similar to
other nations, bail-outs of failing
banks in Greece, Portugal and
Iceland were primarily financed
by taxpayers. As time passed,
the cost of government bail-outs
increased.
Bail-in
Following the financial crisis,
when governments injected hun-
dreds of billions into banks (by
some accounts, trillions), most
bondholders were left untouched
- even those holding subordinat-
ed, or junior, debt, which is theo-
retically designed to bear losses
in times of stress.
In times of finanical stress, a
bail-in forces the borrower’s (the
bank’s) creditors (bondholders)
to bear some of the burden by
having part of the debt they are
owed written off. A real-world
example of a bank bail-in took
place in Cyprus in 2013. The
creditors in question were bond-
holders, and depositors with more
than C100,000 (~$130,090
CAD) in their accounts. In Cy-
prus, depositors were forced to
take losses on uninsured de-
Bail-out
posits of more than C100,000
(~$130,090 CAD). Depositors
surrendered 37.5 % of deposits
over that threshold, which were
then converted to equity in the
bank. An additional 22.5 % of the
funds were held to use if further
action was needed.
The U.S. has already put in place
bail-in-like powers as part of the
Dodd-Frank financial reform act.
The law includes a resolution
scheme that gives regulators the
ability to impose losses on bond-
holders while ensuring the crit-
ical parts of the bank can keep
running.
Under the Canadian govern-
ment’s Taxpayer Protection and
Bank Recapitalization Regime,
a statutory conversion power
allows for the permanent con-
version of eligible liabilities of a
non-viable bank into common
shares of that bank.
In a National Bank Financial
report, analyst Peter Routledge
states that common shareholders
are at the top of the list of those
who will suffer losses as they can
be wiped out by authorities when
other debt including bail-in debt
is converted to new equity in the
recapitalized bank.
Prepare by considering your
exposure to the bail-in regime.
=
=
Sources can be found on the last page of the quarterly.
Bail-out. Bail-in. Prepare.
PANGEAPrivateFamilyOfficesQuarterly:2016,Q1

5. www.pangeafamilyoffices.com
Pinyin: qian kuan
Verb: to owe a debt or some money
Noun: debt, balance due; money that
is owing
Learning Chinese.
A word character study.
Sources can be found on the last page of the quarterly.
Imagine this character as the ‘man’
component on the top being smaller
because he owes money to the
larger ‘man’ on the bottom.
v
In this Chinese character word study, we learn about the word: Debt
PANGEAPrivateFamilyOfficesQuarterly:2016,Q1

6. www.pangeafamilyoffices.com
Care for a second passport?
Why economic citizenship may be worthwhile.
Remember your last exotic jaunt
and how for a split-second you
thought about what it would be
like to live there for parts of the
year? Well, for some people, that
split-second thought sparked
a vision that is now their reality.
Allowing a few moments for you
to continue romanticizing the
idea in your mind, you can proba-
bly still remember the taste of the
flavourful food, the warm breeze
upon your skin and the soothing
sound of the ocean waves as you
drifted off to sleep at night.
That memory should have put a
faint smile on your face. You can
be sure that the families who
now have another home in an
exotic country are smiling - and
the local laissez-faire system
may be part of the reason. Glob-
al citizenship programmes offer
individuals and their families
residency and citizenship options
in a host country, with economic
investment in a pre-defined list
of assets within the country as
a precondition. Along with stock
and real estate portfolios, the
global rich are now buying a new
form of economic security: pass-
port portfolios.
Wealthy investors from around
the world are increasingly shop-
ping for visas or citizenship in
other countries, hoping for a
personal hedge against their
own volatile governments or
economies. The world is a decid-
edly unstable place these days.
And rich people are rushing to
buy passports in search of safe
places to shelter their families
and their money. “Wealthy peo-
ple are looking for safe places
to relocate in case of crisis,” said
Armand Arton, chief executive
of Arton Capital, a company that
advises on investor citizenship
programs. He said demand is
growing by as much as 15% per
year, and the threat of ISIS in the
Middle East along with interna-
tional sanctions in Russia will
continue to fuel interest. Inves-
tors are also lured by the promise
of visa-free travel, plus access to
education and services.
St. Kitts has become the world’s
most popular place to buy a
passport, offering citizenship for
$250,000 with no requirement
that applicants ever set foot on
the island’s sun-kissed shores.
Buyers get visa-free travel to
132 countries, limited disclosure
of financial information, and no
taxes on income or capital gains.
The program became so suc-
cessful that St. Kitts emerged
from the global financial crisis
far ahead of its neighbors in the
Caribbean.
In a recent working paper the
International Monetary Fund said
that citizenship by investment
programmes were reporting
“a surge in clients from China,
followed by Russia, and a steady
rise in clients from the Middle
East, although to a much lesser
degree”. Citizens from “advanced
countries” were also well repre-
sented and generally motivated
by tax savings.
In a joint Wealth-X, Arton Capital-
report entitled A Shrinking World:
Global Citizenship for UHNW
Individuals, research showed
that the average net worth of a
second citizenship applicant is
well above the global average for
UHNW individuals. Second citi-
zenship applicants have an aver-
age net worth of US$205 million,
compared to the global UHNW
average of US$135 million.
The report also revealed that
applicants have better liquidity,
more than US$66 million per
person, nearly double the global
average of US$35 million. This
means that these individuals can
easily meet all the requirements
for citizenship or immigrant inves-
tor programmes with their liquid
investments.
According to a Forbes article,
many are noticing that Americans
renouncing citizenship is at an
all-time high, with numbers in-
creasing. Why is this happening?
PANGEAPrivateFamilyOfficesQuarterly:2016,Q1

7. Article sources:
No place like home:
www.ineteconomics.org/community/experts/rjohnson
www.forbes.com/sites/morganbrennan/2013/11/27/billion-
aire-bunkers-beyond-the-panic-room-home-security-goes-sci-
fi/#2715e4857a0bea7c1db54d76
www.theguardian.com/public-leaders-network/2015/jan/23/ner-
vous-super-rich-planning-escapes-davos-2015
www.theguardian.com/news/blog/2011/oct/14/occupy-en-
gland-protests-gather-momentum-via-facebook
www.bloomberg.com/news/articles/2015-06-08/billionaire-carti-
er-owner-sees-wealth-gap-fueling-social-unrest
Bail-out. Bail-in. Prepare:
www.fin.gc.ca/activty/consult/tpbrr-rpcrb-eng.pdf
www.policyalternatives.ca/newsroom/updates/study-reveals-se-
cret-canadian-bank-bailout
www.iadi.org/2015_Research_Conference/PAPER_1_Roy_El-Her-
raoui.pdf
www.economist.com/blogs/economist-explains/2013/04/econo-
mist-explains-2
www.courant.com/features/hc-word-watch-0315-20150315-story.
html
www.nytimes.com/2008/09/21/business/21qanda.html?_r=0
www.huffingtonpost.ca/2012/04/30/canada-bank-bail-
out_n_1466219.html
www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1804.en.pdf
www.courant.com/features/hc-word-watch-0315-20150315-story.
html
www.lexicon.ft.com/Term?term=bail_in
www.theglobeandmail.com/report-on-business/ottawa-clears-up-
confusion-over-bank-bail-in/article10697667/
www.business.financialpost.com/news/fp-street/common-share-
holders-of-banks-will-pay-biggest-price-for-bail-in-report
www.mcmillan.ca/Files/181083_Banks%20and%20the%20
Budget.pdf
aspx?id=6861
Chinese character word study:
A Handbook for Analyzing Chinese Characters
By Zhifang Ren, pg 516. Jain Publishing Company, Fremont,
California 2008
Traditional Chinese Characters: Learn & Remember 2,193
Characters
Dr. Alan Hoenig, Jan 31, 2013 EZChinesey.com Long Island, NY
Economic citizenship:
www.imf.org/external/pubs/ft/wp/2015/wp1593.pdf
www.wealthx.com/articles/2014/demand-for-global-citizenship-
programmes-primarily-from-mideast-but-asia-is-the-next-frontier-2/
www.money.cnn.com/2015/01/20/luxury/investor-vi-
sas-rich-buy-passports/
www.bloomberg.com/news/articles/2015-03-11/pass-
port-king-christian-kalin-helps-nations-sell-citizenship
www.nytimes.com/2014/12/14/business/some-of-the-rich-col-
lect-art-others-collect-passports.html?_r=0
www.ft.com/intl/cms/s/0/ec63a3d0-2615-11e5-9c4e-a775d2b-
173ca.html#axzz3xZO1BWsO
www.forbes.com/sites/robertwood/2015/10/26/reverse-immigra-
tion-americans-renounce-citizenship-in-record-numbers/#2715e-
4857a0b3a3f067f4079
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PANGEA Private Family Offices Inc.
Pronounced pan-jee-aah, the word PANGEA is a neologism created from two ancient Greek words; pan
meaning all, entire or whole and gaea meaning earth or land. The words taken together mean whole
earth, all lands or entire earth. We chose the name because we believe it epitomizes our thinking. We
recognize that while political boundaries create international separation, technology has unified the whole
earth in a manner that makes the continents appear to fit harmoniously together as one. We care for
families around the world and recognize that economic and geopolitical shifts will have some impact
on the lives of the different family members whom we serve. We don’t claim to know everything that is
happening at all times around the world, however we are diligent to keep watch and ask questions of our
international partners.
PANGEA Private Family Offices is foremost a family wealth strategy firm serving first & second genera-
tion creators of significant wealth, and their families, with independent thinking that redefines their wealth
experience. We specialize in resolving complex family wealth issues for enterprising global families with
thoughtful guidance and insider perspective. Our purpose is to help global families flourish for genera-
tions.
The information, material and content provided in the pages of our quarterly, including pricing information,
(the “Information”) is believed to be reliable when posted, but there is no guarantee that it is accurate,
complete or current at all times. Without limiting the generality of the foregoing, the Information may
include technical inaccuracies or typographical errors, and PANGEA Private Family Offices Inc. its officers,
directors, employees and agents (PANGEA Private Family Offices Inc.) have no obligation to update the
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An invitation to talk.
Perhaps you are contemplating the sale of your
family business or you are concerned about how
to provide fairly to the members of your blended
family.
Whether your wealth affairs have grown too com-
plex for your current financial advisor or you are
interested in learning if a private family office is right
for you and members of your family.
Our client care team is available to arrange a private
conversation to discuss the options available to
you.
E-mail us at: private.request@pangeafamilyoffices.com
Call our client care team at: 1-855-415-4075
Website: www.pangeafamilyoffices.com
Global head office
1 First Canadian Place,
Suite 5700
Toronto, Ontario
M5X 1C7
PANGEA Private Family Offices
@PANGEAPrivateFO
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PANGEA Private Family Offices
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