Identification and presentation of essential analysis for a financial consolidated reporting of a wealthy family

Abstract

This thesis provides an identification of the analyses that appear to be essential and relevant to include in a consolidated reporting aimed at the presentation of a fortunate family’s assets and holdings. Therefore, the numerous performance and risk measures that are present in the academic literature have been reviewed and put in perspective with their respective advantages and disadvantages, which limits their scope and use in practice. Moreover, interviews with practitioners active in the private wealth management field have been carried out. This enabled a confrontation of the theory with reality, which is not always straightforward as clients often do not have the financial knowledge necessary to understand complex metrics relying on statistical and mathematical hypotheses. It turned out a tradeoff has to be made between simplicity and accuracy to make the report understandable for anybody who is not familiar with financial concepts. The general structure is presented in the Appendix. It is clear that it can be tailored to the needs of each client and family office manager who would be willing to add or remove some elements. The primary goal is to deliver a basis that will act as a reference and checklist to make sure a global picture of the assets is given.