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Challenging conventional thinking: Investors are typically taught that diversification of portfolio assets is the prudent approach to preserving and growing wealth. Yet the majority of the families we serve appreciate that this tenet doesn’t necessarily apply at the advisory level. In other words, diversifying across multiple advisors without integrating their strategies may result in unintended consequences. This article explains those consequences and how it can hinder your investment strategy.

Impact investing has become a popular topic of discussion, not only with the mainstream media but also with mainstream investors. Yet while impact investing has entered the mainstream mindset, many investors with the enthusiasm and means to engage meaningfully in impact investing lack the informational resources to do so. For most investors today, impact investing still needs to be translated from a compelling concept into a sound strategy. This situation is especially true for family offices.

There are two reasons for including hedge funds in a traditional asset portfolio. First, their betas with respect to the S&P 500 are often substantially less than unity, which makes them attractive diversifiers. Second, they may provide an additional source of return and risk after adjusting for their exposure to the U.S. equity market, which has been called a structural, or allocation, alpha.

Trusts have gained enormous popularity over the last 20 years. The top 1 percent of the wealthy have 38 percent of their investment assets in trusts, and the next 4 percent have 43 percent of their investment assets in trusts.1 This powerful trend is largely due to the fact that the modern trust can provide a family not only with powerful tax and asset protection advantages, but also with the flexibility and control of several key nontax trust functions, including investment management.

As a matter of Federalism, Congress cannot require the several states to adopt laws regulating investment advisers, but it can prohibit “small” investment advisers from registering with the SEC unless they have a sufficient amount of RAUM. For the last two decades, Congress has been slowly but continuously removing “small” investment advisers from the SEC’s jurisdiction.

This white paper addresses one of today’s most discussed and divisive topics involving investors, investment advisers and brokers: What legal standard of responsibility and conduct should apply to firms and individuals who provide advisory services to investors?This question is receiving a lot of attention from the SEC, the Department of Labor, the President and organizations that would be affected by changes to the existing standards of conduct applicable to investment advisers and brokers. It also was addressed in a recent Supreme Court decision.

Fostering strong advisory relationships with younger investors (often our clients' children) is a particular focus at Federal Street Advisors. In this article, we are pleased to share our approach to helping the next generation address their unique financial needs and become experienced investors.

In a year of notable financial developments, perhaps the most far-reaching and visible of this group is the sharp decline in oil prices in the second half of 2014. Crude has dropped more than 50% since June and is now trading below $50 per barrel. This precipitous decline stands in contrast to a prior four years of relative price stability when oil traded in a fairly narrow range between $93 and $118 per barrel. What are the causes of the rapid change in sentiment around oil? How have capital markets reacted? What will be the impact of lower priced energy for e

We face tremendous challenges today. The forces of globalization and modern consumerism are straining our planet’s resources. As production efficiencies increase through technology and human experience, prices decline thus enabling consumption of more goods by more people worldwide. In developing countries, as people migrate from farms to cities, their demand for food, water, housing, transportation and electricity increases dramatically.

Impact investing has taken many forms over the years. In its earliest form, religious pension plans used negative screening to avoid sin stocks. Later, environmental and political activists would use shareholder proposals to demand that companies reduce pollution or otherwise improve their operations. Today, Wall Street and investors of all types are embracing impact investing. This report takes a look at the total assets under management in the U.S. and what it means to private equity investors for the first quarter of 2015.