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.
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
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
Stonehage Fleming hires 30-year RBC Wealth veteran
McMullen said: ‘We are pleased to welcome Mike to Stonehage Fleming. He has an impressive track record of private client experience and his insights will add to our distinctive integrated wealth proposition.
‘Mike’s appointment demonstrates our commitment to further enhancing and expanding the geographic reach of our service offering as we strive to lead the industry as a truly international family office.’
The appointment comes after Stonehage acquired FF&P Wealth Planning for an undisclosed sum last month. Read more via Citywire Wealth Manager
Stonehage Fleming Hires RBC Wealth Management Veteran
Stonehage Fleming, one of the world’s leading independently owned family offices, announces the appointment of Mike Moodie, formerly Vice President & Managing Director at RBC Wealth Management, as a Consultant and Board Member of Stonehage Fleming US LLC.
Mike has had a long and successful track record as a senior executive in the wealth management industry. Having joined RBC in 1985, Mike’s global career has seen him hold a number of senior leadership positions based in Canada, the Caribbean, USA and the UK, where he was responsible for leading integrated wealth management businesses focusing on RBC’s international HNW and UHNW clients. Based in the USA from 2003 – 2010, Mike led the expansion of RBC’s international wealth management offices across the USA as Head of the America’s region. After relocating to London, between 2010 and 2013, under Mike’s leadership as Head of Wealth Management UK, the business grew significantly and achieved industry recognition as a leading international private bank in the UK in 2013. Mike remained in the UK as an executive member of the Office of the Deputy Chairman International for RBC Wealth Management until his retirement in 2015.
Mike will start his new role based in Toronto in November 2016. He will report to Mark McMullen, CEO of Family Office at Stonehage Fleming.
Commenting on the appointment, Mark McMullen of Stonehage Fleming, said: “We are pleased to welcome Mike to Stonehage Fleming. He has an impressive track record of private client experience and his insights will add to our distinctive integrated wealth proposition. Mike’s appointment demonstrates our commitment to further enhancing and expanding the geographic reach of our service offering as we strive to lead the industry as a truly international family office.”
Mike 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.”
ENDS
NOTES TO EDITORS ABOUT STONEHAGE FLEMING
Stonehage Fleming is one of the world’s leading independently owned family offices and the largest in Europe, Middle East and Africa (EMEA), as measured by its breadth of services, geographic reach and by assets under management, advice and administration. Stonehage Fleming provides a range of services from long-term strategic planning and investments to day-to-day advice and administration to over 250 families of wealth. The Group advises on over $40 billion of assets and includes an investment business with more than $12 billion under management for families and charities. Stonehage Fleming is majority owned by management and staff. The Group employs over 500 people in 11 offices in 7 jurisdictions around the world.
Stonehage Fleming win Spears Award
The Spear’s Wealth Management Award event honours entrepreneurs, philanthropists and others for their innovation, success and outstanding contribution to the wealth management world. Shortlists are based on the work of the Spear’s Research Unit and winners are selected by highly qualified, independent judges.
We are also very proud to announce that Michael Maslinski received the 2016 Spear’s Lifetime Achievement Award. Michael has been a Partner and strategic adviser to the firm for well over a decade. His dedication and depth of knowledge have helped us to position Stonehage Fleming as a pioneering firm within the wealth management industry, and to redefine the Family Office space. Through his consultancy Maslinski & Co he has brought his experience to the benefit of many other firms, also serving as a judge for many years for the prestigious PAM Awards.
We are really delighted that he has been recognised for his contribution to the Wealth Management industry as a whole.
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
Stonehage Fleming hires 30-year RBC Wealth veteran
McMullen said: ‘We are pleased to welcome Mike to Stonehage Fleming. He has an impressive track record of private client experience and his insights will add to our distinctive integrated wealth proposition.
‘Mike’s appointment demonstrates our commitment to further enhancing and expanding the geographic reach of our service offering as we strive to lead the industry as a truly international family office.’
The appointment comes after Stonehage acquired FF&P Wealth Planning for an undisclosed sum last month. Read more via Citywire Wealth Manager
Stonehage Fleming Hires RBC Wealth Management Veteran
Stonehage Fleming, one of the world’s leading independently owned family offices, announces the appointment of Mike Moodie, formerly Vice President & Managing Director at RBC Wealth Management, as a Consultant and Board Member of Stonehage Fleming US LLC.
Mike has had a long and successful track record as a senior executive in the wealth management industry. Having joined RBC in 1985, Mike’s global career has seen him hold a number of senior leadership positions based in Canada, the Caribbean, USA and the UK, where he was responsible for leading integrated wealth management businesses focusing on RBC’s international HNW and UHNW clients. Based in the USA from 2003 – 2010, Mike led the expansion of RBC’s international wealth management offices across the USA as Head of the America’s region. After relocating to London, between 2010 and 2013, under Mike’s leadership as Head of Wealth Management UK, the business grew significantly and achieved industry recognition as a leading international private bank in the UK in 2013. Mike remained in the UK as an executive member of the Office of the Deputy Chairman International for RBC Wealth Management until his retirement in 2015.
Mike will start his new role based in Toronto in November 2016. He will report to Mark McMullen, CEO of Family Office at Stonehage Fleming.
Commenting on the appointment, Mark McMullen of Stonehage Fleming, said: “We are pleased to welcome Mike to Stonehage Fleming. He has an impressive track record of private client experience and his insights will add to our distinctive integrated wealth proposition. Mike’s appointment demonstrates our commitment to further enhancing and expanding the geographic reach of our service offering as we strive to lead the industry as a truly international family office.”
Mike 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.”
ENDS
NOTES TO EDITORS ABOUT STONEHAGE FLEMING
Stonehage Fleming is one of the world’s leading independently owned family offices and the largest in Europe, Middle East and Africa (EMEA), as measured by its breadth of services, geographic reach and by assets under management, advice and administration. Stonehage Fleming provides a range of services from long-term strategic planning and investments to day-to-day advice and administration to over 250 families of wealth. The Group advises on over $40 billion of assets and includes an investment business with more than $12 billion under management for families and charities. Stonehage Fleming is majority owned by management and staff. The Group employs over 500 people in 11 offices in 7 jurisdictions around the world.
Stonehage Fleming win Spears Award
The Spear’s Wealth Management Award event honours entrepreneurs, philanthropists and others for their innovation, success and outstanding contribution to the wealth management world. Shortlists are based on the work of the Spear’s Research Unit and winners are selected by highly qualified, independent judges.
We are also very proud to announce that Michael Maslinski received the 2016 Spear’s Lifetime Achievement Award. Michael has been a Partner and strategic adviser to the firm for well over a decade. His dedication and depth of knowledge have helped us to position Stonehage Fleming as a pioneering firm within the wealth management industry, and to redefine the Family Office space. Through his consultancy Maslinski & Co he has brought his experience to the benefit of many other firms, also serving as a judge for many years for the prestigious PAM Awards.
We are really delighted that he has been recognised for his contribution to the Wealth Management industry as a whole.