Wealth management American styley

Following on from the Citywealth Top 100 Americas list I spent some time in the USA over the quiet August weeks (2006), just pinging around meeting the professionals who had been recommended. Although many US names will be familiar to you – the likes of Karen Troy at RBC, Susan Harrington at Sidley Austin and Josh Rubenstein at Katten Muchin Rosenman, there may be others out of New York City who aren’t so familiar.

From our list of known wealth and private client friends, I am delighted to say that all received compliments wherever I travelled. Warren Whitaker, Josh Rubenstein, Gideon Rothschild, Ivan Sacks and Joe Field were all highly thought of and praised.

What was most interesting in contrast to London was a freedom – much less tradition - and clients from very different backgrounds. And although many accountants, CPA's or lawyers (or attorneys) were operating within one or several states - rather than internationally - they were all sitting on big honey pots of client money. Even Kansas was a hot spot for one entrepreneurial accountant (Don Harris – he manages £225/$450 million client monies – which is a small part of his business – counselling and planning is a greater part) who was regularly flying there from Dallas after a one off referral. He said it seemed to open local flood gates and his seminars were booked months ahead. We decided that they didn’t get as many visitors as they should in Kansas.

Susan Harrington at Sidley Austin (who travels to London frequently) is dealing for the most part with the wealth in South America and tipped me off about the Dominican Republic, which is apparently bursting at the seams with super wealthy clients – many of whom she advises.

RBC in New York reported that their client base was half US citizen and the rest non US as opposed to their Los Angeles branch which was considered more domestic wealth. RBC, NY are targeting the super wealthy and keen to seek out wealth advisers with international clients of net worth c$500m. They say South America is indeed a hot spot and substantial growth is being seen but this tends to get dealt with by their Miami operation. Problems of kidnapping are still rife in the region. Karen Troy’s top tips for excellent advisers were Jack Brister an accountant in New York City but we aren’t sure of his abode at the moment and Marco Blanco (attorney) Curtis Mallet-Prevost, NYC also received high praise.

Bill Knox (William) of Regent Atlantic Capital in Chatham, New Jersey had just got back from a trip to Italy (where he’s building a holiday home) and had been to see his new grand daughter in Switzerland. I’d liken New Jersey to the stockbroker belt in the burbs of Britain – lush greenery and manicured gardens – rather Sevenoaks or Kew in feel – very beautiful. Bill was very specific in saying that he only deals with clients of between $2-25million. Although he added that he manages $1.3billion of client monies and has a 99% client retention record of several years. He says his clients are New Jersey folk but many may have moved to other states or countries but have left their wealth with him to guard and grow.

Despite much information saying that the Americans invest domestically he insists a substantial proportion of all his clients wealth is invested internationally. He runs a model that mixes Global Large Cap, Hedge Funds, International Bonds, Real Estate (cutting back on Real Estate this year) and International Small Cap – amongst other investments in a tried and tested model that has outperformed indices consistently. He particularly likes Paine Webber, Smith Barney and MLIM funds and for international real estate uses a Morgan Stanley offering. Regent Atlantic Capital is furiously independent, buying in all expertise they need. They aggregate monies to help clients reach entry levels for funds of funds. The one exception is their own hedge fund “Regent Atlantic Absolute” mainly because they were offered expertise that was too good to turn away. You can contact Bill (who is really sensible, very bright and has good international knowledge of world politics on www.regentatlantic.com). It’s a two hour train ride to Chatham but is worth the trip.

Don Harris, of Beaird Harris & Co in Dallas said he is seeing a real upwards swing in philanthropy for clients with monies between £5-10million. He was very interested in the psychology of wealth and felt that advisers were keen to diagnose but often not prepared to delve into areas that might involve hopes and dreams or a soft side of planning. His one striking argument is that many people don’t know how much money they need or want or how much will be enough, if they did they would plan better and consider larger philanthropy or charitable projects. He was also investigating the negative ramifications of being rich – the children left with no purpose in life after inheriting huge sums. He impresses on those making plans that it is very important to involve children in processes because they are often not interested in parents goals nor in having huge amounts of money left to them.

Rounding off my trip I spent some time over a glass of wine with Michael Graham who was a delightful chap and also with Pamela Woodburn who has now left RBC for Jersey in the Channel Islands to get married but was in San Francisco. She kindly treated me to a swanky meal whilst there. □


Profiles


Donald B Harris
Beaird Harris & CoIs a wealth innovator, with a keen mind. Dallas based he recently co-wrote a book on wealth counselling “Getting to the heart of the matter.” His clients are enrolled in an intensive period of counselling in which a plan for life-goals and philanthropy are tied together. He says that they never rush the initial stage of comprehensive questioning which may take three months for the client to complete. Interviewing at home, he says its important that high net worth clients consider carefully all they’ve talked about. He says: Its imperative that families get a chance to really talk about their issues, then agree a forward strategy together, in order for plans to remain solidly intact.

There are 9,000 certified planners in the US.

Ed Copley, Akin Gump, Dallas. He works with many Indian high net worth clients, travels to London frequently and is a real Dallas gentleman. Ed Copley at Akin Gump, Dallas manages the estate of Wendy and Emery Reeves. The couple gave a furniture collection to the Dallas Museum of Art – as long the museum replicated the original setting of their home. It is jaw dropping with 15th century furniture and Picasso and Matisse paintings littered everywhere.

Michael Graham, of The Graham Law Firm, Dallas

Michael Graham is charming and his office resides in a small area of Dallas which is compared to Rodeo Drive in California. His office is nestled in a complex of boutique international designer and swanky eateries. He is keenly interested in technology and works more with high net worths that are running businesses these days. Michael has been featured as a “best lawyer in America” and is a fellow of ACTEC. His wife undertakes considerable charity work in China. This is his software: Interactive Legal System Estate planning software which is and Interactive Legal System – for experienced estate planners USA - offers a full complement of forms -- wills, revocable trusts, irrevocable trusts, strategic planning memos, powers of attorney, and more. While Federal in scope, state specific content is provided for all states (except Louisiana). The integrated "content help" is in a class by itself. From solo practitioners to large firms, WTP meets the demands of the most experienced estate planners

www.thegrahamlawfirm.com
http://www.ilsdocs.com/

Jonathan G. Blattmachr, Milbank

I didn’t get to meet Jonathan but Michael Graham says of him: “he is one of the greatest speakers I know, he can fill a room all by himself.” He is a member of the Alaska, California and New York Bars.

Observations and general information picked up on the trip

The Americans love Italy and talk about it constantly – doesn’t matter where you are or who you are talking to. Most have visited regularly – skipping the UK altogether. I asked one adviser what the affinity was. He said “at the very least the Italians seem to like us.”

Everyone in America is pointing at Texas for voting George W Bush in but the Texans deny this vigorously.

Atlanta has a 60% black population which is extremely affluent. Atlanta to the North is considered more internationally sophisticated than Georgia at its South.

Dallas is oil and technology wealth. Locals say that the wealthy wear jeans whilst their advisers wear suits. Don't forget the famous historic Alamo battle.

Vegas – super luxury, non gaming hotels are now taking a grip like the Christian LaCroix. The real estate market is extending away from the strip.

New Jersey is called the Garden State. North New Jersey is blue blood, traditional wealth and is extremely affluent. Conversely South New Jersey is considered below the poverty line.

Although there is a general phrase that ‘lots of Americans don’t have passports’ this does not apply to the business community who travel far and wide regularly – no matter where based.

Atlanta is nicknamed Hotlanta – it averages about 100 degrees a day and is
rarely cool. Bobby Brown and Whitney Houston are the Atlanta area's most notorious famous couple. The couple are often seen living it up at Atlanta's posh ‘The Palm’ restaurant. Jane Fonda, Elton John and Julia Roberts all have homes in Atlanta. The home of Coke - as my friend Joanna Forshee said "you wont find Pepsi here!"

My next trip to the USA is for LegalTech, New York in Feb 2008
See my tech blog here
http://wwwcitytechmagcom.blogspot.com/

And my tech publishing and events company here
www.citytechmag.com

Read about my Citywealth Los Angeles wealth management event at the Hotel Bel Air.
Citywealth has a weekly wealth newsletter that goes out around the world for £500 + vat/$1000. It advises about people in the industry and their clients each week.

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