High net worth families often consider establishing a Family Office to manage various services such as investment management, tax planning, bookkeeping, and concierge services. The Beringer Group, with significant experience in this area, assists families in understanding their needs and options, conducting feasibility studies to compare the costs and benefits of creating their own Family Office versus outsourcing services. They provide unbiased recommendations to reconcile expectations with reality, helping families make informed decisions about their wealth management strategies.

The evolution of the family enterprise model stems from the historical development of family offices, initially adopted from European wealth management practices by prominent American families like the Rockefellers and Carnegies. Family offices, designed to manage the finances of high net worth families, have evolved into multi-family offices (MFOs) to cater to the needs of multiple families, but they still face limitations in adapting to the dynamic 21st-century global economy. In response, the Beringer Group proposes the family enterprise model, which treats family wealth management as a holistic family business, offering advantages such as formal financial management, independence from professional biases, borderless services, and a tailored approach to service delivery, aiming to meet the evolving needs of high net worth families.

Investors aim to achieve specific goals within a defined timeframe while managing risk. Our mission is to assist clients in clarifying their objectives and expectations through the creation of an Investment Policy Statement (IPS), which serves as a planning tool to enhance goal attainment. Regular annual reviews of the IPS ensure alignment with the investor's evolving needs and objectives, allowing for necessary modifications.

The investment advisory team conducts a comprehensive analysis of various factors affecting an investor's ability to meet current and future goals, including cash flow, income, net worth, and balance sheet statements. They utilize tools to simulate different scenarios and assess the likelihood of goal attainment, with a focus on the uncertainty surrounding rates of return. The team then constructs model portfolios tailored to the client's situation, incorporating a range of assets and regularly reviewing the asset allocation model to ensure alignment with the investor's objectives and market conditions.

The Beringer Group offers customized reporting solutions for investors, ranging from concise three-page statements to comprehensive 50-page quarterly reports with analytics. They streamline the process for investors with multiple custodians by providing asset overlays, simplifying the management of assets across different accounts. Additionally, they collaborate with clients' accountants and attorneys to proactively manage taxes throughout the year, avoiding last-minute adjustments that may be less effective at year-end.

The hedge fund industry exceeds $800 billion with over 7,000 active funds. The Beringer Group emphasizes the importance of selecting the right fund or strategy tailored to individual asset allocations, as returns rely on managerial skill or fund strategy. These alternative investments aim to generate positive returns regardless of market conditions, enhance diversification, and mitigate portfolio risk. Through the Beringer Group, investors gain access to renowned and emerging managers and funds not typically available to the public.

The Beringer Group considers Private Equity (P.E.) as a valuable asset class for portfolio diversification, typically accessing it through funds or fund of funds based on client asset size. They emphasize that P.E. fund returns are primarily influenced by manager ability and vintage year, with top quartile managers showing consistent performance and vintage year affecting fund performance significantly. To mitigate risks, they recommend investing in top quartile P.E. funds diversified over multiple years and also offer expertise in reviewing direct P.E. investments, leveraging their Merger and Acquisition services to provide unique opportunities for their high net worth clients.

The Beringer Group boasts an extensive network of fund managers, ranging from large, established firms to smaller boutique shops, ensuring a diverse selection for client portfolios. They prioritize aligning client interests by seeking top-performing managers at competitive fees, often negotiating more favorable terms and conducting ongoing due diligence to ensure adherence to objectives. Their focus lies in recommending managers tailored to specific investor needs, emphasizing both returns and risk management.

The Beringer Group team actively monitors the performance and activities of selected managers in the portfolio through regular communication, performance analysis, and on-site visits. Managers are assessed against index returns and peer group performance, and those who raise concerns are placed on a Watch List for intense scrutiny. If deemed necessary, underperforming managers are replaced with new selections to ensure the portfolio's effectiveness.