Welcome to the inaugural issue of the Private Wealth Management Newsletter, created to serve the needs of the growing number of our members who are serving private clients.

The Private Wealth Management Newsletter is offered to you as a member benefit, but you must sign up to continue receiving it on a quarterly basis.

This first issue contains practical perspectives on global and regional wealth management issues from some of the industry’s most highly respected thought leaders. 

You can forward the newsletter to colleagues and clients, or share your thoughts about the newsletter on the Private Wealth Forum. 

The Emerging New Model for Wealth Management
Zvi Bodie, PhD, and Paula Hogan, CFA

Consumers face very different challenges today in planning for lifetime financial security from what they did previous generations ago. The wealth management paradigm is transitioning from the Markowitz mean–variance perspective to the life-cycle theory of saving and investing worldview, with many implications for wealth management practice.

The Rational Wealth Manager
Harold Evensky

The concept of “homo economicus,” or the rational economic man, has served as a cornerstone of modern finance theory since formally introduced roughly 50 years ago. Behavioral finance challenges this paradigm and the way in which we advise clients. These tips and techniques are designed to help wealth managers incorporate basic behavioral finance concepts into their practice.

Lifetime Financial Advice
Roger G. Ibbotson, PhD, Moshe A. Milevsky, PhD, Peng Chen, PhD, CFA, Kevin X. Zhu, PhD

Once we recognize that individuals’ wealth consists of both human and financial capital, we are able to advise them on their asset allocation and insurance needs throughout their life cycle.

Defining and Quantifying the Financial Needs of the Very Wealthy
Jean Brunel, CFA

A crucial first step for translating the goals of a wealthy family into an investment program involves defining and quantifying a family’s financial goals. Most techniques have common elements regardless of the exact approach. Consider these examples and tips for an implementation framework.

Mutual Funds for Individual Investors: Relic of the Past or Standard of the Future?
CFA Institute Centre for Financial Market Integrity

With US$12 trillion in assets and almost 300 million shareowner accounts, mutual funds in the United States are unquestionably successful as financial products for individual investors. Is the current regulatory structure essential for funds to fulfill their purpose? Would access to non-U.S. commingled offerings benefit U.S. investors?

United Kingdom Residence and Domicile Review: Draft Legislation Softened by the Final 2008 Budget
Philip Marcovici

Draft U.K. legislation proposed dramatic changes to the attractive tax rules offered in the United Kingdom to “resident, nondomiciliaries”. The draft approach put forth was heavy handed.  Although, the final Budget provided welcome relief on a variety of fronts, it may still prove worrisome for many taking advantage of the United Kingdom’s favourable tax treatment of those who are not domiciled there.