Dear Hawthorn client,
"Keeping wealthy families wealthy.” You’ve probably seen or heard this part of the Hawthorn promise before because it is the core of what we do. In addition to investment performance and risk mitigation strategies, we also know that fully integrated solutions to your wealth planning is necessary to protect your wealth. In this issue of Perspectives, we bring you articles that speak directly to our promise by offering ways to protect your wealth through strategies that fall outside of traditional investing.
Special assets such as art, not only bring you joy, they can significantly impact your wealth. The disposition of these assets need special care and strategy. This past March, George Michael’s private art collection sold for over $15 million at a Christie’s auction. The proceeds will be used to further the late pop star’s philanthropic efforts. Indeed, selling a collection for charity is a viable option for some families. However, there are other choices that may be more suitable for your intentions and better protect the underlying assets. The consideration needed in determining how to handle and protect special assets is explored in Artwork & Your Legacy: Stewarding Your Collection.
If you run a family foundation, or have been thinking about starting one, you are not alone. According to the Foundation Center, over 41,000 family foundations operate in the U.S. as of 2015. They are often a tax-efficient way to carry on your charitable legacy and engage your family in the process. But running a foundation can be tricky and if not done well, can lead to distribution issues and management divides. As you will see in Managing Your Foundation as a Business, we discuss step by step how to adopt a family governance structure in managing the foundation to improve your chances of success.
Lastly, in Align Your Investments with Rising Trends, we discuss Hawthorn’s new thematic investment process. We aim to enhance portfolio returns by capturing opportunities in up-and-coming trends, such as robotics and advancements in social media. And in Responsible Investing through Active Engagement, you see how we can help provide you with the means to be an active and engaged company shareholder, enhancing your own beliefs and values around responsible investing.
I hope you will find all of these article helpful and inspiring. Please let us know if you have further questions or feedback and if you have other topics you would like to see covered in Perspectives.
Nicole M. Perkins
Executive Vice President, Managing Executive