THE UNIVERSITY OF CHICAGO BOOTH SCHOOL OF BUSINESS

EXECUTIVE EDUCATION
 
Private  Wealth  Management  
For High Net Worth Individuals and Families

November  2-­5,  2010  

The cornerstones of successful wealth management are: management of the economic engine, control of costs, effective
governance, and the expression and transfer of personal and family values. The course objective is to help participants to
evaluate each of these cornerstones and to design a personalized family wealth strategy and its supporting infrastructure
that they can implement.

Instructors
Steve Kaplan Howard Helsinger
Neubauer Family Professor of Entrepreneurship & Finance Lecturer in Law, The University of Chicago
The University of Chicago Booth School of Business Partner at Sugar & Felsenthal LLP
steven.kaplan@ChicagoBooth.edu hhelsinger@sfllp-law.com

John Heaton Sara Hamilton

Joseph L. Gidwitz Professor of Finance Founder and CEO
The University of Chicago Booth School of Business Family Office Exchange (FOX)
john.heaton@ChicagoBooth.edu shamilton@familyoffice.com

Stuart Lucas Betsy Brill

Chairman Founder and President
Wealth Strategist Partners LLC Strategic Philanthropy, Ltd.
slucas@wspchicago.com betsy@stratphilanthropy.com

Program Administrators
Mark Lewis, Associate Director Rebecca Meyer, Assistant Director
The University of Chicago Booth School of Business The University of Chicago Booth School of Business
312.423.8040 312.423.8037
mark.lewis@ChicagoBooth.edu rebecca.meyer@ChicagoBooth.edu

Cynthia Wambold, Program Director

Wealth Strategist Partners LLC
312.863.6083
cynthia@wspchicago.com
 
 THE UNIVERSITY OF CHICAGO BOOTH SCHOOL OF BUSINESS
EXECUTIVE EDUCATION

Private  Wealth  Management  

Exclusively For High Net Worth Individuals and Families

November 2-5, 2010

Day 1 Tuesday, November 2, 2010

7:30 - 8:15 A.M. Continental Breakfast and Registration Room 406

8:15 - 8:30 A.M. Welcome and Introduction Room 406

8:30 - 9:30 A.M. The Strategic Wealth Management Framework Lucas

A comprehensive, integrated, long-term approach to wealth management drives the success and impact of your
economic engine and the quality of your legacy. The Strategic Wealth Management Framework and the Eight
Principles that act as guideposts to its implementation will be explained in this session, with particular interest given
to the wealth owner as Wealth Strategist. The importance of values in effective wealth management will be
introduced. The framework helps to organize and integrate issues and questions that will be addressed in detail
during the course.

9:30 - 10:00 A.M. Introduction of Course Participants

10:00 - 10:15 A.M. Break

10:15 - 12:30 P.M. Defining the Vision for Your Wealth Management Endeavors
Evaluating what you’d like to accomplish with your life and wealth, not just your money, is an important exercise for
every wealth owner. What are the key personal and family resources that you can mobilize to get the job done?
In this session, we will organize into breakout groups to encourage participants to share their perceptions and
insights. Your classmates are potentially among your best long-term resources.
10:15 - 11:00 A.M. Setting the Stage
Hamilton

11:00 - 12:30 P.M. Breakout Session Hamilton, Lucas, Mihailidis

Rooms 222, 226, 230

12:30 - 1:30 P.M. Lunch Lounge 420

1:30 - 3:00 P.M. Defining Your Financial Objectives Lucas

What long-term return should you expect from your investments and how does that compare with your business or
career? How do investment returns affect your wealth, net of your leakages (spending, fees, taxes and inflation)?
How does your career or business add to your financial strength? Which financial objective is right for you and what
are the key risk factors to achieving that objective? How do career, inheritance, longevity, diversification and luck
factor in?

3:00 - 3:30 P.M. Break

3:30 - 5:00 P.M. Overview of Investment & Wealth Management Industries Lucas
What are the Capital Kibbutz, the Secret Society and the Enchanted Forest? What do investment managers’ and
wealth managers’ business models look like? How do their key business challenges affect you? Who are the right
investment managers for you?

5:15 - 6:00 P.M. Optional: Family Office Discussion Hamilton/Lucas-Room 406

6:00 9:00 P.M. Reception and Dinner Midway Club

 
 Day 2 Wednesday, November 3, 2010
8:00 - 8:30 A.M. Continental Breakfast Room 406

8:30 - 10:30 A.M. Investment Theory & Strategies: Alpha’s, Beta’s and Performance Heaton
This session will provide a detailed overview of investment concepts, including an explanation of asset
allocation and diversification. What are the undiversifiable risks faced by investors? In the face of
these risks, what mix of investments should you choose? What is "alpha" and how do you measure it?
Does the money management industry consistently generate alpha? Does past investment performance
predict future performance?

10:30 - 10:45 A.M. Break

10:45 - 12:30 P.M. Hedge Funds: Do they hedge? How do they perform? Heaton
What are hedge funds? Do they add value? What are some of the risks and benefits of owning hedge
funds? How should they fit into your overall asset allocation?

12:30 - 1:30 P.M. Lunch Lounge 420

1:30 - 3:00 P.M. Multi-Generational Estate Planning Helsinger-Room 406

Can trusts protect your family from taxes or creditors? Can you provide for and protect your family
without spoiling them? How much control can you, or should you, retain after you are gone? Can
your planning encourage harmony and responsibility, and not sow discontent? How do you select
someone to control the family assets (as Trustee or otherwise) after you are gone? Many of the points
in this session are relevant to both U.S. and non-U.S. taxpayers.

3:00 - 3:15 P.M. Break

3:15 - 5:00 P.M. Concurrent Sessions

 Tax Factors for Individuals Helsinger-Room 406

Should income taxes influence investment decisions? How do taxes impact trusts differently from
individuals? How should state income taxes impact planning? How do income and estate taxes impact
lifetime investment decisions? How do estate taxes shape multi-generational planning? Many of the
points in this session are relevant to both U.S. and non-U.S. taxpayers.

 Breakout Discussion for International Participants Beck-Room 230

5:30 - 9:00 P.M. Reception and Dinner Robie House, architect Frank Lloyd Wright

 
 Day 3 Thursday, November 4, 2010
8:00 - 8:30 A.M. Continental Breakfast Room 406

8:30 - 10:00 A.M. Private Equity and Venture Capital (Part 1) Kaplan
We delve into one of the most successful investors into alternative investments. We use this case study
of the Yale University Investment Office to introduce key investment concepts and to map out the private
equity and venture landscape. We will also review David Swensen’s overall guiding investment
principles. What is the basis for his asset allocation strategy? What are the characteristics of these
assets classes? How do you choose among myriad options? Does reality live up to the promise? What
are the pros and cons of investing in these asset classes going forward? Which aspects of Yale’s
experience can we replicate? Which can we not?

10:00 - 10:30 A.M. Break

10:30 - 12:00 P.M. Private Equity and Venture Capital (Part 2) Kaplan
Now we look more deeply at private equity and venture. What is involved in effectively analyzing and
participating in private equity? Since all private equity funds seem to look good at the time of investing,
what do you look for to improve your chances that managers deliver on the “promise”? We will do an
in depth analysis of Sterling Partners to find out.

12:00 - 1:00 P.M. Lunch Lounge 420

Optional: Investment Discussion Lucas/Kaplan-Room 406

Some course participants are active investors and may wish to explore with each other specific
investment issues of their choosing. Lucas and Kaplan will moderate a participant-led exploration of
how they can improve their results.

1:00 - 2:30 P.M. Investment Infrastructure and Reporting Lucas

You wouldn’t run your company without good management reports; why settle for less when it comes to
managing your financial assets and income? What are the key performance indicators you need that tie
results to your objectives, educate family members (and advisors), maintain focus on key decisions, and
hold everyone accountable? How do the challenges of getting good data influence your administrative
infrastructure?

2:30 - 3:00 P.M. Break

3:00 - 5:00 P.M. The Power of Giving Back Betsy Brill

Moderated Session
What is the state of family philanthropy, public service and the nonprofit sector in America today? We
are fortunate to have several families willing to talk about their experience in giving back, what they do
to strengthen their family identity through philanthropy, and the value they see in public service. They
will also address the challenges of measuring their impact and the ways in which they act
entrepreneurially to leverage their resources and improve society.

5:00 - 6:00 P.M. Reception (cash bar) Lounge 420, 4th floor

 
 Day 4 Friday, November 5, 2010
8:00 - 8:30 A.M. Continental Breakfast Room 406

8:30 - 10:00 A.M. Family Legacy Planning Hamilton-Room 406

Every family member contributes to the family legacy, and one of the principal reasons for legacy
planning is the ability for the family to preserve its past and to build a future legacy. Family wealth
creates opportunities for the family to pursue a higher purpose together, to collaborate for the greater
good, and to achieve these goals through shared family initiatives. In multi-generational families, the
development of an effective decision-making process among family members is essential for them to
work together productively. How does the family define the enterprise they own together? What are
the polarities that pull the family apart rather than together? What do families do when they can’t
agree on their future goals? What are the best practices in governance that every family needs to
understand?

10:00 - 10:30 A.M. Break

10:30 - 12:30 P.M. Choosing Key Financial Advisors to Support the Family Eco-system Lucas/ Hamilton
By this point in the course, you will have defined the key elements of your wealth management strategy.
We will focus this session on selecting and managing your key financial advisor so that you can
integrate and more confidently oversee your wealth management activities.

12:30 - 1:30 P.M. Lunch Lounge 420

1:30 - 3:00 P.M. Picking Your Investment Strategy Lucas

This session will introduce the Index, Barbell and Active Alpha investment strategies. Which are you
and your advisors most suited for? Are you focused on issues over which you have some measure of
control? What are the advantages of commingling family assets?

3:00 - 3:30 P.M. Break

3:30 - 4:30 P.M. Promoting Entrepreneurial Stewardship Lucas

You have to recreate your family’s wealth in each generation if you don’t want to oversee its depletion.
But a flourishing family does not prosper by financial success alone. How do you strengthen the
affinities that give a family purpose? How do you optimize the family’s human capital, helping each
family member to flourish? How do you maintain a strong economic engine across the generations?

4:30 - 4:45 P.M. Closing Remarks