Managing your Wealth
Wealth Management, Investment Strategy, Due Diligence, Reports
Acting as your family’s Chief Investment Officer, our registered professionals provide fully independent wealth management advisory services to guide you in managing and stewarding your family’s financial assets.
Since our inception we have maintained a completely open-architecture model whereby all investment solutions are outsourced to best-in-class solutions from around the globe. This approach has been built to ensure that all our investment options are based on our own independent and objective research and due diligence – not based on any financial incentive to sell or place product. And because we do not manage any solutions internally, or have strategic relationships with financial product providers, our families can feel confident that we are always acting in their best interests.
Our approach allows for flexibility and input. Each family portfolio is constructed from the ground up to address the unique needs of each family and the competing needs and objectives that are common in a multi-generational setting. By incorporating existing investments into the plan, we ensure that incremental changes make sense strategically and ensure minimal tax consequences. New investments are presented to families only after extensive research and due diligence and are only acted upon based on client feedback. Because each family portfolio is bespoke, full transparency is ensured and each and every investment decision is made with our client’s knowledge and input – a feature that is not possible with model portfolios or more formulaic approaches.
Multi-generational families have unique needs and objectives that are not well served by more traditional approaches to portfolio construction. Traditional approaches to asset allocation are more prescribed – seeking to diversify assets to effectively control risk at the portfolio level and speak to a singular goal and time horizon. But families have multiple goals and objectives with their financial wealth and are better served through a described approach that seeks to allocate risk as opposed to simple diversification. Multiple goals, stakeholders, and time horizons necessitates a different framework.
Richter Family Office is a Registered Portfolio Manager in the jurisdictions in which it operates. While we abide by the regulatory requirements that allow us to act as a discretionary manager for our families, we do not exercise this control nor commit to any investment without our client’s full knowledge, input and concurrence. Our core belief is that by working in an advisory capacity with our families we are empowering them to have knowledge and control over their own financial picture. Aspiring to be a trusted advisor necessitates open dialogue and understanding to ensure that all parties are in alignment.
Independence requires a fulsome manager research function to ensure that any investment solution is properly vetted and assessed before consideration by our families. It is also one of the core functions of a complete family-office solution. As one of the largest independent capital allocators in Canada, Richter Family Office is afforded unique access to differentiated solutions from around the globe. And our families benefit not only from our deep access, but also from preferred access points with regards to investment minimums and fees. Acting as a fiduciary for our clients necessitates seeking the best access possible and leveraging off the combined asset base of the families that we represent.
And while we seek preferred access points with the managers with whom we work, this is not the basis for their selection. Our manager research function starts by seeking and identifying differentiated investment strategies that can serve a specific role within our clients’ portfolios. Once identified, these are then run through an exhaustive due-diligence process to ensure that if an investment makes its way into our families’ portfolios we have high confidence in its capacity to perform as expected. Restricting our process based on fee reductions and preferred access would immediately introduce conflicts into our process. And working exclusively with managers that will provide discounts would impair our ability to find best-in-class solutions.
Having a reputation as a thoughtful and preferred partner in the investment community has afforded our families the opportunity to invest in unique and differentiated strategies that span both the traditional and non-traditional scope of investments. But while having access is important, having the capacity to filter investment opportunities and identify risks is critical. Our research process necessitates multiple face-to-face meetings and on-site meetings so we can truly understand if a strategy is suitable for our clients.
All our manager research is documented and shared with each family prior to consideration for investment. Our focus is on process and repeatability, operational integrity, compliance, and finally, a full tax review so that we can access performance expectations on an after-tax basis. We will also assess any tax-compliance implications to ensure that families are not saddled with unforeseen tax filings.
We apply the same level of rigor and oversight to both Richter Family Office solutions, as well as investments that are sourced by our families. Our role is to provide independent oversight over the full spectrum of our families’ investments to ensure continuity and effective portfolio construction.
Consolidated Investment Reporting and Performance Monitoring
Often families of significant means find their way into a wide variety of investments and lack a clear picture of how these investments interact and perform from a consolidated perspective. Having a clear view to how a portfolio is performing from a high level provides greater clarity and control of the big picture and provides better insight into how each investment is contributing relative to its role. Without a consolidated picture, families fall victim to running horse-races among their managers and become tempted to make poor investment decisions based on relative performance.
Because of our open-architecture, Richter Family Office can provide a completely consolidated picture for our families and include both investments sourced and approved through our due diligence function, as well as a families’ existing investment and advisor portfolios. And because we are compensated only by one source – our clients – ongoing performance monitoring and recommendations are not biased through a need to bring assets “in house”. Our approach remains completely agnostic to the underlying investments so long as they perform as expected within the portfolio.
Our consolidated reporting provides a clear view on the totality of our families’ financial resources, as well as providing more detailed analysis across each strategy and investment manager. Reports provide appropriate benchmarking, risk assessment, and historical performance both at the consolidated level and across each discrete investment. Reports are further refined via entity as families with complex structuring should assess risk and performance according to the specific goals and objectives of each entity.
Finally, while simple in its presentation, our reporting structure necessitates the capture and integration of data at the transactional level. Simply put, this provides ready access to a complete and detailed picture of every investment in our families’ portfolios. Capturing information at the transactional level (as opposed to just tracking returns) provides for accurate and streamlined reports that simplifies financial reporting to the benefit of tax planning and preparation.
Meet our expertsThe people behind the expertise.
Danny RitterCPA, CA, CFA
Mindy MaymanB.A., Econ., Fin. PI., FMA, CIM
Greg MooreCFA, FEA
Sudharshan SathiyamoorthyPh.D., MBA
Justine DelisleCPA, CA, Pl. Fin.
Richter Family Office
We understand that the transfer of your wealth to future generations is about far more than just the dollars and cents. It’s about the transition of your legacy.
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