Pub Club: Susie Hillier and Richard Bertin, Stonehage Fleming Wealth Planning
Boulestin is a stylish French restaurant in historic St James’s, named after famous culinary innovator Marcel Boulestin, who was described in The New Yorker in 1932 as a ‘Doctor of the Philosophy of the table, Culinary Ambassador to the English, intelligent gentleman of France, man of the world, essayist of vigor and charm…’
We will have to take their word for that, writes Steve Plowman. What I can be sure of, is that I am joined there by an intelligent duo of vigour and charm, Susie Hillier and Richard Bertin of Stonehage Fleming Wealth Planning.
Bertin begins by suggesting that Hillier start our lunch by talking a little about her background, and after a little verbal tennis, Hillier obliges. ‘I initially started out in an insurance group, which was incredibly useful as I learned all of the things that I did not want to do. ‘It became clear that from a regulatory point of view, it was becoming very hard for an accountancy business to offer the same level of service as an investment planning business.
Having previously worked at Deloitte, I needed a brand that my client base could trust. Luckily for me, Richard had done the hard work in setting the business up.’ Hillier continues: ‘We then spent the next three years building the Fleming brand. From a Stonehage Fleming, multi-family office point of view, we joined that party in the summer.’
Read more via Citywire Wealth Manager
STEP 60-second interview with Mark McMullen
What is your role within your firm?
I am CEO of our family office division, and also serve as a key advisor to a number of high net worth international families.
How did it feel to win a STEP Private Client Award?
It is a real honour to be awarded the Multi-Family Office of the Year Award by STEP for the second consecutive year. We strive to set new standards of excellence for the wealth management industry, putting the family at the heart of everything we do, and are proud of this continued recognition as we work toward our goal of becoming one of the world’s leading family offices.
Why is winning a STEP PCA important to your firm?
The STEP PCA is a clear mark of quality, and winning it is a further endorsement of our reputation, our commitment to the international private wealth sector and of the high standards our team consistently delivers. The award is recognised by peers and clients and is a huge motivator for our staff.
What are the main challenges facing your organisation/practitioners at the moment?
I see two main issues – one facing our business and one facing our clients. The strength of our defences around client data is top of our minds for us as an organisation. Storing valuable information that is often regulated, potentially sensitive and private, makes it essential we remain diligent in protecting our clients’ data. For our clients, a sensitive and well-constructed approach to governance and succession planning should be a priority. Our recent thought piece, Four Pillars of Capital for the Twenty-First Century, highlighted quite stark differences between the generations’ views on succession planning.
How will you deal with these challenges?
We are constantly investing in technology and ways to further strengthen our security across the group, offering clients the peace of mind that their data is protected. Firstly it is all about employing the right people, who really understand security and follow best practice, and educating them on changing trends and technology. Outside the technology team we also implement rigorous staff training across the group through our risk and compliance departments. Secondly, we are continually evaluating our security, running daily automated testing on internet points and regular independent penetrating testing through world specialists. Intergenerational transfer is a crucial part of what we do, and we believe passionately that helping families identify and articulate the purpose of their wealth is as important as its management. We have extensive experience in this area, which the judges were kind enough to highlight, as well as promoting education and engagement with the next generation, through running two courses annually in the UK.
What do you like best about your job?
I have the opportunity to work with dynamic and stimulating people – both clients and colleagues. .. and what do you feel is most worthwhile? As trusted advisors, we are in the business of helping families preserve and grow their wealth. Building relationships to enable us to help them in this way, is demanding but very rewarding.
What would you say to a young person thinking of a career in this industry?
Experience will only be acquired over time, so technical competence (validated where possible through appropriate qualifications) is a vital starting point. And take technology very seriously.
Where do you see future growth, both in terms of sectors and jurisdictions?
We are the leading family office in the Europe, Middle East and Africa region, looking after a core group of some 250 families. We have an abundance of opportunity to further increase our client base within the region, including in the UK. In addition, we have always believed that you cannot serve families properly without the experience of dealing with their US based interests and family members, and have had a presence in the US for a number of years – we see significant growth potential here too.
Which social media channels do you use and why?
Social media is an increasingly important, particularly when it comes to engaging with the next generation. We are just starting to use Twitter (@SF_FamilyOffice) and Linked In to raise brand awareness for the Stonehage Fleming Group and strengthen our professional networks. We also recognise the contribution our employees could make in shaping industry conversation, and will start to explore this via social media in the future.
Pub Club: Susie Hillier and Richard Bertin, Stonehage Fleming Wealth Planning
Boulestin is a stylish French restaurant in historic St James’s, named after famous culinary innovator Marcel Boulestin, who was described in The New Yorker in 1932 as a ‘Doctor of the Philosophy of the table, Culinary Ambassador to the English, intelligent gentleman of France, man of the world, essayist of vigor and charm…’
We will have to take their word for that, writes Steve Plowman. What I can be sure of, is that I am joined there by an intelligent duo of vigour and charm, Susie Hillier and Richard Bertin of Stonehage Fleming Wealth Planning.
Bertin begins by suggesting that Hillier start our lunch by talking a little about her background, and after a little verbal tennis, Hillier obliges. ‘I initially started out in an insurance group, which was incredibly useful as I learned all of the things that I did not want to do. ‘It became clear that from a regulatory point of view, it was becoming very hard for an accountancy business to offer the same level of service as an investment planning business.
Having previously worked at Deloitte, I needed a brand that my client base could trust. Luckily for me, Richard had done the hard work in setting the business up.’ Hillier continues: ‘We then spent the next three years building the Fleming brand. From a Stonehage Fleming, multi-family office point of view, we joined that party in the summer.’
Read more via Citywire Wealth Manager
STEP 60-second interview with Mark McMullen
What is your role within your firm?
I am CEO of our family office division, and also serve as a key advisor to a number of high net worth international families.
How did it feel to win a STEP Private Client Award?
It is a real honour to be awarded the Multi-Family Office of the Year Award by STEP for the second consecutive year. We strive to set new standards of excellence for the wealth management industry, putting the family at the heart of everything we do, and are proud of this continued recognition as we work toward our goal of becoming one of the world’s leading family offices.
Why is winning a STEP PCA important to your firm?
The STEP PCA is a clear mark of quality, and winning it is a further endorsement of our reputation, our commitment to the international private wealth sector and of the high standards our team consistently delivers. The award is recognised by peers and clients and is a huge motivator for our staff.
What are the main challenges facing your organisation/practitioners at the moment?
I see two main issues – one facing our business and one facing our clients. The strength of our defences around client data is top of our minds for us as an organisation. Storing valuable information that is often regulated, potentially sensitive and private, makes it essential we remain diligent in protecting our clients’ data. For our clients, a sensitive and well-constructed approach to governance and succession planning should be a priority. Our recent thought piece, Four Pillars of Capital for the Twenty-First Century, highlighted quite stark differences between the generations’ views on succession planning.
How will you deal with these challenges?
We are constantly investing in technology and ways to further strengthen our security across the group, offering clients the peace of mind that their data is protected. Firstly it is all about employing the right people, who really understand security and follow best practice, and educating them on changing trends and technology. Outside the technology team we also implement rigorous staff training across the group through our risk and compliance departments. Secondly, we are continually evaluating our security, running daily automated testing on internet points and regular independent penetrating testing through world specialists. Intergenerational transfer is a crucial part of what we do, and we believe passionately that helping families identify and articulate the purpose of their wealth is as important as its management. We have extensive experience in this area, which the judges were kind enough to highlight, as well as promoting education and engagement with the next generation, through running two courses annually in the UK.
What do you like best about your job?
I have the opportunity to work with dynamic and stimulating people – both clients and colleagues. .. and what do you feel is most worthwhile? As trusted advisors, we are in the business of helping families preserve and grow their wealth. Building relationships to enable us to help them in this way, is demanding but very rewarding.
What would you say to a young person thinking of a career in this industry?
Experience will only be acquired over time, so technical competence (validated where possible through appropriate qualifications) is a vital starting point. And take technology very seriously.
Where do you see future growth, both in terms of sectors and jurisdictions?
We are the leading family office in the Europe, Middle East and Africa region, looking after a core group of some 250 families. We have an abundance of opportunity to further increase our client base within the region, including in the UK. In addition, we have always believed that you cannot serve families properly without the experience of dealing with their US based interests and family members, and have had a presence in the US for a number of years – we see significant growth potential here too.
Which social media channels do you use and why?
Social media is an increasingly important, particularly when it comes to engaging with the next generation. We are just starting to use Twitter (@SF_FamilyOffice) and Linked In to raise brand awareness for the Stonehage Fleming Group and strengthen our professional networks. We also recognise the contribution our employees could make in shaping industry conversation, and will start to explore this via social media in the future.
From hobby to enduring legacy
The first step to building a serious collection may not be deliberate. Often the initial purchase is on impulse. Having dipped your toe in the water, it is almost inevitable that you take a greater interest in the intoxicating world of art, but very few give enough consideration to the practicalities of owning an art collection. These range from initial due diligence to the ownership structures, succession planning, lending to museums, maintaining a catalogue, transport, storage, insurance, conservation and valuations, all of which require specialist knowledge and skills.
Read full CRS Art Law newsletter >>
Ownership of vehicles
Will the art be in the name of the individual or held through a trust, company or foundation? This decision begs numerous questions, starting with the purpose and objectives of the collection, which are quite likely to change over time. If, as is possible, a fiduciary structure is used, it is vital that the trustee has a good understanding of the practicalities of art management. They have a responsibility to see that the collection is expertly managed.
Purpose of trusts
The settlor may wish to keep the collection for personal use in their own lifetime, but must address what the future holds for the collection after they die. If the family are to be involved in the future, they should be involved now, so that they have a good grasp of the philosophies and intentions. Depending on the significance and content of the collection, they may wish the art to be available to a wider public, for educational purposes, or create their own museum. Clarification of the purpose of a collection helps avoid disputes amongst the next generation.
Due diligence or provenance
How do you make sure you are buying exactly what you think you are buying? Through tracing the work back to the artist in an unbroken chain, with proper documentation for each stage. The quality of the evidence will not only ensure you avoid the classic mistake of acquiring paintings looted in World War II, it will significantly affect the value if and when you try to re-sell. Obviously such due diligence requires an expert eye, independent from the auction houses.
Storage
Storage conditions are vital to the preservation of artwork. Whether it is stored in a private home, storage facility or museum, are suitable and reliable temperature and humidity controls in place? These factors could alter the condition of the work and ultimate value.
Taxation and paperwork
Correct advice and paperwork is especially relevant when moving artwork across borders; oversights could result in very costly penalties. Import and export licences, as well as cultural licences must be completed according to the shipment.
There are significant tax consequences depending on whether it is owned in a personal name, by a trust, foundation or company. Furthermore, not only must you think of who owns it, but of who enjoys it. The art may be owned by a trust but on the walls of a beneficiary, which could trigger tax issues. This may be managed by having the correct agreements in place.
Insurance
Appropriate insurance for art and jewellery is key. Insurers must be kept up to date on movement of the works, especially if they are on loan or in transit. Artworks should be labelled with the correct ownership details and the insurance policies must be in accordance with these.
Conclusion
Owning and managing an art collection is a complex business requiring frequent advice from a variety of different experts. Unlike investment management, the art world is almost entirely unregulated. This is a sobering thought when one considers the immense nature of the assets in question, potential conflicts of interest and the consequences of ‘getting the tax wrong’. Independent strategic advice is not easy to find.
Sell everything? Managers reveal coping strategies for turbulent markets
Gerrit Smit, partner & head of equity investment, Stonehage Fleming
Look for companies with competitive edge We believe the best investment strategy at any time is to buy only outstanding businesses with a particular competitive edge against its competition, and making sure we do not pay anything more than a fair valuation for that business.
If we succeed in getting this combination right, we believe we will reap handsome returns over time. We invest for the sustainability of dividend growth to benefit from the power of compounding interest by holding an exceptional business until it becomes overvalued.
Clearly one of the most critical issues of investing is to not overpay for the asset. Nobody knows how low prices may fall, but we can value any business. As long as we do not pay anything more than a fair valuation, chances are that we will succeed with our investment.
The current market turmoil again offers such opportunities to buy excellent businesses below fair valuations. We currently have the opportunity to be very selective about the quality of the business we buy to hold for the long term, and switch out of any weaker franchises.
Stonehage Fleming hires J.P. Morgan Private Bank veteran
Stonehage Fleming, one of the world’s leading independently owned family offices, announces the appointment of Andrea Tardy as a Partner in the Geneva office.
Andrea, formerly a Managing Director of J.P. Morgan Private Bank, has a long and successful track record in the private banking industry. Having originally joined J.P. Morgan’s Equity Derivatives division in 1997, Andrea moved to the Private Bank in 2000 heading the Wealth Advisory business for the EMEA region. He was then appointed Head of Investment Solutions for EMEA in 2006. He left J.P. Morgan to join Union Bancaire Privée in London before moving to head up the Geneva branch of Goldman Sachs Bank AG where he led the development of the ultra-high net worth and Family Office business. Andrea re-joined J.P. Morgan in 2009 as Managing Director of J.P. Morgan (Suisse) SA and Head of the Swiss Market. Lastly, he spent one year in Miami to help the development of the local market.
Commenting on the appointment, Mark McMullen CEO of Stonehage Fleming Family Office, said: “We are pleased to welcome Andrea to Stonehage Fleming. In over 25 years in the industry he has worked for several highly regarded businesses in Switzerland and around the world and his experience is well suited to Stonehage Fleming’s distinctive integrated family office approach.
“Switzerland is an important market for Stonehage Fleming and we are confident that Andrea’s arrival will enable us to expand our presence there. In this newly created role Andrea will work closely with our colleagues in Geneva, Zurich and Neuchatel as well as our international offices.”
Andrea Tardy said: “As the largest multi-family office in Europe, Stonehage Fleming already possesses an impressive international client base and an award winning proposition. They are pioneers of the family office industry, with their multi-disciplinary advisory model which combines international tax advice, fiduciary services, art management and corporate finance with an independent asset management offering. In the changing landscape of wealth management they are well positioned to address the challenges and respond to the evolving needs of successful entrepreneurs and families of wealth.”
From hobby to enduring legacy
The first step to building a serious collection may not be deliberate. Often the initial purchase is on impulse. Having dipped your toe in the water, it is almost inevitable that you take a greater interest in the intoxicating world of art, but very few give enough consideration to the practicalities of owning an art collection. These range from initial due diligence to the ownership structures, succession planning, lending to museums, maintaining a catalogue, transport, storage, insurance, conservation and valuations, all of which require specialist knowledge and skills.
Read full CRS Art Law newsletter >>
Ownership of vehicles
Will the art be in the name of the individual or held through a trust, company or foundation? This decision begs numerous questions, starting with the purpose and objectives of the collection, which are quite likely to change over time. If, as is possible, a fiduciary structure is used, it is vital that the trustee has a good understanding of the practicalities of art management. They have a responsibility to see that the collection is expertly managed.
Purpose of trusts
The settlor may wish to keep the collection for personal use in their own lifetime, but must address what the future holds for the collection after they die. If the family are to be involved in the future, they should be involved now, so that they have a good grasp of the philosophies and intentions. Depending on the significance and content of the collection, they may wish the art to be available to a wider public, for educational purposes, or create their own museum. Clarification of the purpose of a collection helps avoid disputes amongst the next generation.
Due diligence or provenance
How do you make sure you are buying exactly what you think you are buying? Through tracing the work back to the artist in an unbroken chain, with proper documentation for each stage. The quality of the evidence will not only ensure you avoid the classic mistake of acquiring paintings looted in World War II, it will significantly affect the value if and when you try to re-sell. Obviously such due diligence requires an expert eye, independent from the auction houses.
Storage
Storage conditions are vital to the preservation of artwork. Whether it is stored in a private home, storage facility or museum, are suitable and reliable temperature and humidity controls in place? These factors could alter the condition of the work and ultimate value.
Taxation and paperwork
Correct advice and paperwork is especially relevant when moving artwork across borders; oversights could result in very costly penalties. Import and export licences, as well as cultural licences must be completed according to the shipment.
There are significant tax consequences depending on whether it is owned in a personal name, by a trust, foundation or company. Furthermore, not only must you think of who owns it, but of who enjoys it. The art may be owned by a trust but on the walls of a beneficiary, which could trigger tax issues. This may be managed by having the correct agreements in place.
Insurance
Appropriate insurance for art and jewellery is key. Insurers must be kept up to date on movement of the works, especially if they are on loan or in transit. Artworks should be labelled with the correct ownership details and the insurance policies must be in accordance with these.
Conclusion
Owning and managing an art collection is a complex business requiring frequent advice from a variety of different experts. Unlike investment management, the art world is almost entirely unregulated. This is a sobering thought when one considers the immense nature of the assets in question, potential conflicts of interest and the consequences of ‘getting the tax wrong’. Independent strategic advice is not easy to find.
Sell everything? Managers reveal coping strategies for turbulent markets
Gerrit Smit, partner & head of equity investment, Stonehage Fleming
Look for companies with competitive edge We believe the best investment strategy at any time is to buy only outstanding businesses with a particular competitive edge against its competition, and making sure we do not pay anything more than a fair valuation for that business.
If we succeed in getting this combination right, we believe we will reap handsome returns over time. We invest for the sustainability of dividend growth to benefit from the power of compounding interest by holding an exceptional business until it becomes overvalued.
Clearly one of the most critical issues of investing is to not overpay for the asset. Nobody knows how low prices may fall, but we can value any business. As long as we do not pay anything more than a fair valuation, chances are that we will succeed with our investment.
The current market turmoil again offers such opportunities to buy excellent businesses below fair valuations. We currently have the opportunity to be very selective about the quality of the business we buy to hold for the long term, and switch out of any weaker franchises.
Stonehage Fleming hires J.P. Morgan Private Bank veteran
Stonehage Fleming, one of the world’s leading independently owned family offices, announces the appointment of Andrea Tardy as a Partner in the Geneva office.
Andrea, formerly a Managing Director of J.P. Morgan Private Bank, has a long and successful track record in the private banking industry. Having originally joined J.P. Morgan’s Equity Derivatives division in 1997, Andrea moved to the Private Bank in 2000 heading the Wealth Advisory business for the EMEA region. He was then appointed Head of Investment Solutions for EMEA in 2006. He left J.P. Morgan to join Union Bancaire Privée in London before moving to head up the Geneva branch of Goldman Sachs Bank AG where he led the development of the ultra-high net worth and Family Office business. Andrea re-joined J.P. Morgan in 2009 as Managing Director of J.P. Morgan (Suisse) SA and Head of the Swiss Market. Lastly, he spent one year in Miami to help the development of the local market.
Commenting on the appointment, Mark McMullen CEO of Stonehage Fleming Family Office, said: “We are pleased to welcome Andrea to Stonehage Fleming. In over 25 years in the industry he has worked for several highly regarded businesses in Switzerland and around the world and his experience is well suited to Stonehage Fleming’s distinctive integrated family office approach.
“Switzerland is an important market for Stonehage Fleming and we are confident that Andrea’s arrival will enable us to expand our presence there. In this newly created role Andrea will work closely with our colleagues in Geneva, Zurich and Neuchatel as well as our international offices.”
Andrea Tardy said: “As the largest multi-family office in Europe, Stonehage Fleming already possesses an impressive international client base and an award winning proposition. They are pioneers of the family office industry, with their multi-disciplinary advisory model which combines international tax advice, fiduciary services, art management and corporate finance with an independent asset management offering. In the changing landscape of wealth management they are well positioned to address the challenges and respond to the evolving needs of successful entrepreneurs and families of wealth.”
Bank Executives: Leaving Behind a Life in Comfort
More and more highly successful bankers are leaving their well-paid jobs at big companies and for a life at less well-known firms, where they can put to use their entrepreneurial spirit and where they enjoy a much higher degree of independence. J.P. Morgan, Union Bancaire Privée, Goldman Sachs – three big-name banks where Andrea Tardy (pictured below) developed into one of Switzerland’s most successful private bankers.
Stonehage Fleming are pioneers of the family office industry, with their multi-disciplinary advisory model which combines international tax advice, fiduciary services, art management and corporate finance with an independent asset management offering,» said Tardy, according to the statement.
In the changing landscape of wealth management they are well positioned to address the challenges and respond to the evolving needs of successful entrepreneurs and families of wealth.
Read more via Finews
Banking on relationships
“Ultimately, though, you need someone who recognises that sometimes, it’s complicated, says Mark McMullen, chief executive of the family office division at Stonehage Fleming. He says: “[It] requires a considerable investment of time to ensure that he or she develops an adequate understanding of the client’s affairs.”
Read more via Financial Times
Wealth management veteran Moodie joins Stonehage Fleming board
Wealth management veteran Mike Moodie has been appointed as a consultant and board member of Stonehage Fleming after his retirement from RBC Wealth Management last year.
Moodie said: “Stonehage Fleming already possesses an impressive client base and a multi award winning proposition.
“My experience of leading RBC into new global markets aligns very well with Stonehage Fleming’s strategic plan and I am looking forward to working with the team and being part of the next stage of Stonehage Fleming’s growth.”
Read more via Investment Week
Bank Executives: Leaving Behind a Life in Comfort
More and more highly successful bankers are leaving their well-paid jobs at big companies and for a life at less well-known firms, where they can put to use their entrepreneurial spirit and where they enjoy a much higher degree of independence. J.P. Morgan, Union Bancaire Privée, Goldman Sachs – three big-name banks where Andrea Tardy (pictured below) developed into one of Switzerland’s most successful private bankers.
Stonehage Fleming are pioneers of the family office industry, with their multi-disciplinary advisory model which combines international tax advice, fiduciary services, art management and corporate finance with an independent asset management offering,» said Tardy, according to the statement.
In the changing landscape of wealth management they are well positioned to address the challenges and respond to the evolving needs of successful entrepreneurs and families of wealth.
Read more via Finews
Banking on relationships
“Ultimately, though, you need someone who recognises that sometimes, it’s complicated, says Mark McMullen, chief executive of the family office division at Stonehage Fleming. He says: “[It] requires a considerable investment of time to ensure that he or she develops an adequate understanding of the client’s affairs.”
Read more via Financial Times
Wealth management veteran Moodie joins Stonehage Fleming board
Wealth management veteran Mike Moodie has been appointed as a consultant and board member of Stonehage Fleming after his retirement from RBC Wealth Management last year.
Moodie said: “Stonehage Fleming already possesses an impressive client base and a multi award winning proposition.
“My experience of leading RBC into new global markets aligns very well with Stonehage Fleming’s strategic plan and I am looking forward to working with the team and being part of the next stage of Stonehage Fleming’s growth.”
Read more via Investment Week