Speaker Presentation by Eva Law, Founder & Chairman, Association of Private Bankers in Greater China Region & Association of Family Offices in Asia at the PWM Greater China Summit 2015 in Hong Kong

1. Uncovering Trends and Opportunities
to Increase the Ability of Adapting to
the Shifting Demands of Modern Family Offices
Eva Law
3rd Sep 2015

2. Agenda
• Asia and Great China Market Recap
• Macroeconomic Environment in Greater China FO
Landscape
• Global Growth Opportunities
• Exploring the success and sustainability factors of
running the family office and managing the wealth

3. Asia and Great China Market Recap

4. Asia and Great China Market Recap
• By 2018, USD 17.7 trillion net new wealth in Asia
• China is expected to contribute over 50% of the
growth I HNW personal financial assets in Asia
• Still a significant room for growth

5. Macroeconomic Environment in
Greater China FO Landscape

6. Macroeconomic Environment in
Greater China FO Landscape
• New Flood of MFOs and consolidation comes to play
• Two poles : Mega ones go for make model, Petite
ones go for out-sourcing
• Concerns over Tax, beneficial ownership disclosure &
AML Rules
• High demand in managing circumstances change
• Investment Horizon Shrinks

7. New Flood of MFOs and consolidation comes to play
• Fragmented market
• Wide gap on profitability among players
• Large onshore players leverage M&A to grow
• Quick growth of onshore market
• Still largely product drivers, chasing returns
• Large banks dominate, but increasing competition
• Offshore asset continue to flow to foreign players
• Small local players seek partnership
• Consolidation comes to play, but at slow pace

8. Two poles :
Mega ones go for ‘build’ model, Petite ones go for out-sourcing
• Outsourcing helps family office to stay cost efficient
• While building own infrastructure and maintain
house services can preserve the confidentiality and
independence of family office
• Family needs to determine the expectations prior to
creating business plan for the family office. These
include setting priorities and defining services scope

9. Concerns over
Tax, beneficial ownership disclosure & AML Rules
• FATCA and Tax Reporting
• Disclosure on beneficial ownership
• Strategies to comply with AML & KYC
• Protection of Privacy

10. High demand in managing circumstances change
• Flexibility is paramount
• External circumstances change : tax, law shift
• Internal circumstances change : death, divorce
• Nationality, Live/Work abroad, purchase/dispose
offshore asset have different tax implications
• Family constitution – dictate the arrangement
• Wealthy couples plan proactively

11. Investment Horizon Shrinks
• Families of significant wealth have multi-generational
investment horizons
• In time of market stress, investment horizons shrink
• Horizon changes when liquidity event is anticipated,
target date investment become popular
• Investing to generate wealth is always carry long
term structure
• Being disciplined is key

12. Global Growth Opportunities

13. Global Growth Opportunities

14. Global Growth Opportunities

15. Global Growth Opportunities

16. Global Growth Opportunities

17. Exploring the success and
sustainability factors of
running the family office and
managing the wealth

18. Success and Sustainability – What to do?
Take charge Align Interests Accountability Capitalize
Resources
Delegate
Empower
Independence
Diversify
but
Focus
Simplicity
Develop
Future
Leader

19. Success and Sustainability – What to do? 1
• Take charge and do it early
• Articulate a set of value being the foundation of
future wealth management planning
• Familiar with the family finance and plans
• Structure long term goals
• Tax, fee, inflation erode wealth
• FOs exercise disciplined wealth building process

20. Success and Sustainability – What to do? 2
• Align family and business interest around wealth
building goals and strategies
• Help define a family’s identity, reinforce common
purposes and create economies of scale
• Establish legitimate rationale to motivate people
work together, mediate conflicts, drive consensus
and ensure regular review of goals and results
attainment

21. Success and Sustainability – What to do? 3
• Create a culture of accountability
• Accountability systems & performance metrics
• Reinforce objective business goals and performance
expectation
• Help drive implementation of wealth strategies and
provide benchmark to judge the performance of all
family office executives
• Avoid personalized criticism

22. Success and Sustainability – What to do? 4
• Capitalize on family’s financial scale and combined
strength of family members’ personalities,
experience, skills, affiliations and network
• Passionate but disciplined family leadership is key to
mobilize resources

23. Success and Sustainability – What to do? 5
• Delegate, Empower, Respect Independence
• Support Family Members
• Support Investment Team in Family Office
• Different involvement by different family members
• The right way : keep family members informed,
respond promptly and participate constructively in
family discussions & meetings

24. Success and Sustainability – What to do? 6
• Diversify but focus
• Diversification is a risk control measure
• Focus helps make good judgement
• Go ahead to pursue the family’s own focused interest

25. Success and Sustainability – What to do? 7
• Be simple
• Low cost, financial indices, proven wealth
management products
• Choose those offer a higher degree of certainty,
easier implementation, greater flexibility
• Complex solutions offer high remuneration for
advisors but subject clients to long term risks.
• The more complex the strategy, the more variables in
the management process, the more difficult to
reverse the course

26. Success and Sustainability – What to do? 8
• Develop future leaders who have talent, energy,
contact and business experience
• Nurture them, give them specific roles and missions
• Engage them in decision making discussion
• Outside Experience, making them resourceful

27. Contact
Eva Law 罗孟君
Founder & Chairman
Association of Private Bankers In Greater China Region
Association of Family Offices In Asia
Founding member of Women In Leadership – Hong Kong & Pearl River Delta Chapter
Honorary Chairman of Hong Kong Family Offices Association
Executive Chairman of Association of China Independent Wealth Advisory Institutions - Family Office Council
Researcher of Xi'an Jiaotong University,
Board Advisor of Singapore Private Wealth Association
Special Advisor to Asian Co-Investors Club
Appointed writer for Family Office Elite Magazine
evalaw@private-bankers.net
evalaw@familyoffices-asia.org
+ 852 5646 4066
+ 86 147 1433 4066
WeChat : APB-AFO

28. For more information about the
marcus evans investments
summit series:
investmentseries@marcusevanscy.com