Centrolaw

Wealth owners have an overwhelming choice when it comes to managing their investments. Wealth managers, private banks, investment platforms, and investment funds compete over assets to be invested. Furthermore, there is much information about investing; thus, some wealth owners may decide to manage their own portfolios. A less known service is external asset management, although it offers several benefits. Source:  https://vocal.media/lifehack/why-you-should-consider-external-asset-management

  A family-driven process called family governance establishes formal and informal structures for communicating and acting towards common objectives. These focus on the family, the family company, and the overall family wealth. Family governance is, therefore, a crucial component of wealth planning.   Even the most skilled wealth planners cannot provide all the technical guidance you need to preserve and transfer your wealth, which presents some of the most significant obstacles and opportunities. Instead, they result from the entire family being prepared for and dedicated to the family governance process.   Trust and family communication indeed create or break wealth management strategies. At Centro LAW, we put the human element in family wealth planning at the core to leave a lasting legacy and achieve the best results.    On what foundation can family governance be built? We assist clients in making wise financial decisions while considering families' numerou...

  Successful families have compelling stories that span several generations. Their central narrative often touches on more profound, emotional concerns of purpose, culture, and values than "what we do." It connects the past, present, and future like a golden thread through time. We humans often examine the main characters in a novel and wonder if we might recognize ourselves in them. For instance, the family firm may survive if the patriarch's original tale of success serves as a constant source of harmony and togetherness.  Every person will have a unique life story. The critical question is whether the different storylines fit within the enterprise's larger story. The family business may fail if this is not done.   No wealthy family can ensure their success will continue in the future. Paradoxically, their future can be more unclear if they only concentrate on financial planning and investment returns.   However, a story has the power to enhance their ambitions wit...

  Non-fungible tokens are unique; each token cannot be traded for another of the same type and value. They represent digital proof of ownership for individual items.  As a result, their most important use cases involve assets that, before NFTs, were difficult to divide and transfer, such as art, rarities like vintage vehicles or rare wines, and intellectual property rights like song royalties. Here's another use case: art collectors could desire to acquire priceless works of art but may not want to buy them outright. As fractional ownership is made possible by tokenizing art, many collectors can pool their money to invest. Without the consent of other investors or transferring the actual piece itself, each investor may sell their token to another. Furthermore, token holders can profit from owning the artwork while agreeing to have it kept in custody by someone qualified, such as an art gallery or a museum, thanks to blockchain technology's transparent and fraud-proof nature. R...

  When it comes to selecting a trustee, trust is crucial. But, as the old adage goes, trust is terrific, but control is better. Consider it a procurement case if you're thinking of forming a trust or changing an existing trustee. Because you're entrusting a large percentage of your family's wealth to a third party, it's undoubtedly a very personal decision for you. But it's business for the trustee, and it should be. Regardless of the nature of your personal relationship, you are still hiring a trustee. As a result, take a professional approach and conduct thorough due diligence on the trustee, possibly with the help of independent advisors. It should include information about the ownership structure, financial stability and reputation, and regulatory and compliance history, among other things. Potential conflicts of interest, operational standards, employee experience and volatility, and pricing are all factors to consider. The goal is to build a long-term relation...

  Whether you're budgeting, filing taxes, or managing your investments, almost everyone can benefit from the assistance of a financial professional. The question is, with which type of professional should you collaborate? Asset managers and wealth managers are two types of professionals you could encounter. Wealth management and asset management are not the same services, even though they are frequently confused. Each has a unique and critical role to perform in your financial management. Here's all you need to know about the differences between asset and wealth management and how to choose the proper professional for you. Asset Management vs. Wealth Management: What's the Difference? Asset Management has a focus on the administration of investments. It concentrates on the components of your portfolio, following a specific investment strategy and when and how you rebalance them. Technicalities and specific methodologies drive asset management, and you'll find a lot of r...

  External asset management External asset managers (EAMs), also known as independent asset managers, administer financial assets and investments for others without taking custody of them. You'll still need a custodian, usually a regulated bank, and a power of attorney to permit portfolio management if you deal with an EAM. The EAM's power of attorney is generally limited, and they are not allowed to remove funds. Independent asset management EAMs are financial service providers who aren't licensed as bank or securities dealers in most situations. They are independent of the custodian and hence free to offer any product or solution to their clientele. They don't hold their clients' assets because custody remains in their clients' names, as previously stated. EAMs offer financial advice in addition to discretionary asset management. The external asset management business model You need to consider three contractual relationships when working with an external asse...