Intra-family loans can provide a low-risk way to achieve estate planning objectives in a volatile economy, but these loans can result in unexpected taxable income or gift taxes. In addition, some debt attributes can pose valuation challenges. Stout Risius Ross discusses valuation concepts and other important attributes to consider in structuring intra-family loans.
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Just released in the end of May 2010 by the CFA Institute, this is the first attempt by the CFA Institute to set forth thoughts on what should be included and comprises an investment policy statement. I had the opportunity to provide input when meeting with co-author Bob Dannhauser at the CFA Institute as part of the drafting process, and the final product is perhaps the best piece of its kind being distributed on a broad platform. --Charlie
Portfolio volatility needs to be considered in making asset allocations at a given level of risk, and that volatility can take on extreme values that depend on the volatility of volatility, or vovo. This paper from the National Association of Active Investment Managers explores vovo-related concepts and offers insights on tactical asset allocation.
Domestic demand is increasing across Asia, but the continent still relies heavily on exports for its growth. A report from Aberdeen Asset Management Asia Ltd. considers factors related to Asian domestic demand, such as the effect of China's recent move to revalue its currency and the region's use of exchange rate management as its key policy management tool.
The new health care reform legislation adds a 3.8 percent tax on net investment income for many charitable donors starting in January 2013, while not allowing charitable deductions to be used to offset the tax. This article from Hemenway & Barnes explains how an interest-free loan to a charity can provide the same tax benefits as a charitable deduction.
Today's emphases on fiduciary responsibility, risk management and increased transparency require better due diligence when selecting managers. Especially in today's turbulent markets, advisors who spend more time and resources to do due diligence well can find themselves at a distinct competitive advantage. While these tips won't necessarily help you identify the next active management superstar, they can bolster your manager selection and due diligence program.
Most institutional investors plan to increase their allocations to alternative investments over the next three years, increasing their influence over the sector, while the funds' managers and administrators view regulation and governance as the industry's most important challenges during the same period. These are just two of the key findings of a worldwide survey by KPMG International.
The planning landscape is likely to change even more as families seek to provide a sustainable pool of wealth not only for succeeding generations but also for the current generation. Nease, Lagana, Eden & Culley Inc. highlights the most significant of these changes and some of the advantages they present for planners and clients who are prepared to embrace change and navigate the altered landscape.
A new paper from Liebowitz Associates makes the case for a strong performance management system, noting its ability to help firms adapt to change, integrate business initiatives and execute strategies more quickly. The author also discusses the steps involved in implementing a well-structured performance management system.
Confronted by the effects of the most significant economic downturn in the post-war era, angel investors want more certainty and earlier exits. In this paper, Landmark Angels discusses a strategy to increase the success of angel venture investments and the likelihood of better and earlier returns.