Investment decisions
High-Net-Worth Investment Strategy: Compare the Whole Mandate
Decision in brief
Two proposals with the same return target can ask the family to accept very different risks. Compare the complete mandate: what can be bought, how leverage is used, how fees are charged, where the assets are held and when capital can be returned.
Put every proposal on the same basis
| Dimension | Question for the proposer |
|---|---|
| Return | Is the figure a target, history or contractual payment? |
| Fees | Which management, performance and underlying charges apply? |
| Risk | What happens to capital in an adverse scenario? |
| Liquidity | What is the actual redemption or exit mechanism? |
| Ownership | Which legal person holds the asset and receives distributions? |
| Currency | What does the outcome mean in the family’s spending currency? |
Correctly measure currency
Illustrative arithmetic, not a forecast: if one euro initially buys one dollar, €100 buys $100. A 9% USD return produces $109. If the euro then falls 12% to $0.88, that becomes about €123.86 before fees and tax, a gain in euro terms. The earlier article incorrectly called this a loss.
Inspect private-market terms
The SEC notes that private-equity fund documents govern terms including fees and expenses, and that investment can remain illiquid for years. Obtain those documents before comparing the proposal with liquid public assets.
Source:[1] SEC / Investor.gov
- Ask who values assets, how often, and what evidence supports the valuation.
- Separate a manager’s own history from an illustrative strategy backtest.
- Identify investor eligibility, concentration and commitments already made.
- Request a clear statement of conflicts and compensation.
When to decline or delay
If the provider cannot explain how an advertised return is calculated, or the proposal requires access to money the family cannot lock up, the brief is incomplete. Ask an appropriately qualified investment adviser to review suitability. We can discuss an introduction, with any professional service scope and fees agreed directly with the specialist.
Sources and scope
Editorial briefing checked against the linked sources. No independent professional review is claimed. Application to your circumstances requires a qualified specialist.
- Private equity funds
SEC / Investor.gov · Source checked:
Define the next professional step
Share the objective, countries and timing. We review the request and discuss the specialist needed and whether an introduction is available. Agree the service scope and fees directly with the specialist.
Continue this topic
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