The successful inheritance of family wealth requires the correct wealth management concepts and management methods to plan and arrange the family wealth in advance.

The allocation of family assets is an effective way to reduce the risk of the entire investment portfolio through diversified investment methods, so as to better realize the preservation, appreciation and inheritance of family wealth.

01

rockefeller family

Starting from John Day Rockefeller, the founder of the Rockefeller family mythology, this leading wealth family in the United States has prospered for six generations and still plays a pivotal role in the United States.

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The Rockefeller family started in the oil industry in the 19th century, and by the end of the 19th century, the family's asset allocation had begun.

The Rockefeller family asset allocation is divided into three directions:

1

Rockefeller Endowment

Used to run philanthropy around the world, focusing on education, health, civil rights, urban and rural poverty alleviation. The style of the fund is very low-key, but its donations have a long time span, large scale, and extensive and significant achievements, which can be well-deserved to be the leader of philanthropy in the United States and the world.

2

Rockefeller Endowment

It is a world-renowned biomedical education and research center. With 24 Nobel Prize winners in the fields of medicine and chemistry, it is the institution with the most Nobel Prizes in the field of biomedicine in the world.

2

Rockefeller Family Foundation

The fund initially only managed the assets of the Rockefeller family, but after several generations, the family's assets gradually diluted. At present, it has become an open family office. With the help of Rockefeller's brand and asset management experience, it has jointly managed assets for many wealthy families. This also reflects the development trend of the gradual specialization of American family funds.

02

Li Ka-shing family

Take Li Ka-shing, the richest man in China, as an example. In recent years, he has shifted his investment focus from the mainland to Europe and the United States, and then from Europe and the United States to Southeast Asia. Recently, he also set up a family office in Singapore.

1

Changhe Department

Its CKH Holdings (CK Asset and Hutchison Whampoa) business covers more than 50 countries around the world. The global layout of the Changhe Department enables it to maintain steady development even in the face of the financial crisis in 2007 and 2008.

2

Victoria Harbour Investment

Victoria Harbour Investments is owned by the Li Ka-shing Foundation, which is privately held by Li Ka-shing, and is run by close friend Zhou Kaixuan. Facebook, Airbnb, Skype, Zoom, etc. are all successful investment cases of Horizon Investments.

A well-diversified portfolio is a key factor in investment success. There have been many attempts by ultra-high net worth families in mainland China to diversify their investments. For example, Jack Ma invested in the hedge fund Libra Capital, and also led the Yunfeng Fund.

03

Bill Gates family

All of Bill Gates' personal and foundation assets are managed by his family foundation.

1

Cascade Investment

When Bill Gates set up the family fund in the early 1990s, more than 90% of its assets were in Microsoft stock. After that, he hired a professional investment team to manage the assets of family funds and charitable funds for him, and gradually evolved from the initial 90% Microsoft stock and 10% bond funds to the current relatively balanced decentralized allocation.

According to the laws and tax regulations of the United States and accounting for the inflation rate, the family fund must keep the investment rate of return above 8% in order to ensure that the property does not shrink. The average return on investment of Bill Gates' family fund has remained at around 10% for several years, mainly due to the diversification of investment by professional investment teams.

04

Chen family

The Chan family founded Hang Lung Group, one of Hong Kong's largest real estate developers, in the 1960s. After that, the families were divided: continue to build a commercial real estate empire, and set up a family fund, Morningside Capital, for global investment.

The Chen family office was established back in the 1960s, when family offices were still a new concept in Asia. As a pioneer, the Chen Family Office focuses on two core missions, investment and philanthropy.

1

Morningside Capital

Morningside Capital is one of the earliest institutions in China to engage in early-stage venture capital, and has invested in leading high-tech companies such as Sohu, Ctrip, and Xiaomi as an early investor. The Chen family has also established a professional team in Hong Kong to make indirect investments in the world's leading alternative investment funds, including hedge funds and venture capital funds, to diversify investment risks.

2

Morningside Foundation

The Chen family supports various charitable projects through the Morningside Foundation. The foundation donated $350 million to Harvard in 2014, a record 378 years. And co-organized the Morningside Mathematics Award to recognize outstanding Chinese mathematicians under the age of 45.

It can be seen that these top global families, whether in industrial investment or financial investment, adopt a diversified global asset allocation.

As a powerful front-end wealth management tool, overseas identity can help high net worth individuals maximize the benefits of global asset allocation.

You are welcome to consult Xingyunhai International on matters such as asset allocation, identity planning, financial and tax planning, inheritance and sustainability of family wealth.