Archive for January, 2019

Institutional Allocator: Endowment CIOs Score Seven Percent-Plus Pay Growth

01 / 17 / 2019
by Charles Skorina | Comments are closed

12-10-18 Institutional Allocator: Endowment CIOs Score Seven Percent-Plus Pay Growth: Skorina

Read More »

New York Times: Yale’s Endowment Grew 12.3%, Beating Harvard’s but Not Some Others

01 / 16 / 2019
by Charles Skorina | Comments are closed

10-1-18 New York Times: Yale's Endowment Grew 12.3%, Beating Harvard's but Not Some Others

Read More »

Family wealth: finding purpose, fighting entropy

01 / 15 / 2019
by Charles Skorina | Comments are closed

A conversation with Stuart Lucas: wealth manager, educator, and family scion

Stuart Lucas has double-barreled credentials as a wealth manager.

He's a Harvard MBA who worked for years with top-shelf financial firms including Wellington Management Company and Banc One (now JP Morgan Chase), where he led their Ultra HNW unit.

And, he is himself an heir to family money by way of his great-grandfather, E. A. Stuart, who founded the Carnation Company.  In 1985, the closely-held business was sold to Nestle, and the proceeds were distributed among Mr. Stuart's descendants.

In 2004, Mr. Lucas merged his professional and personal worlds by founding Wealth Strategist Partners, which continues today as the investment advisor to his and selected other family offices.

He has gone on to design and lead a Private Wealth Management executive education program, designed specifically for wealthy families at the University of Chicago Booth School, now in its 12th year.  And, as an adjunct professor, he has taught a Wealth and Family Enterprise Management course at the MBA level.

All this experience has also been distilled into his widely-read book, Wealth: Grow It and Protect It, for general readers; and into academic-quality papers for The Journal of Wealth Management.

We're delighted that he made some time to talk to us.

Keeping it in the family

It is better to have a permanent income than to be fascinating.

- Oscar Wilde

Skorina: Stuart, you've focused on high-net-worth families and their money for decades as a practitioner; an academic; and even personally, as a member of an extended, affluent family.  You probably know as much about this stuff as anyone in the business.

Where do you begin with a new client who has to deal with all of this for the first time?

Lucas: Charles, it's true I've been doing this for quite a while, but no one knows everything about it.  I learn something new every day.

A family office with significant wealth has many moving parts.  There's money-management per se, which you focus on; and it's crucial.

But, there are also the structural, legal, and tax issues.  And there are opaque but vital intra-familial and cultural issues that have to be dealt with.  They're all important, and all inter-related.

The laws and tax rates keep changing, so do markets, and so do the families themselves.  We try to design and execute an integrated strategy that balances all these elements.

Skorina: So, how do you start the conversation with a new client?

Lucas: When we sit down with a family who's thinking about hiring a wealth manager or setting up a family office, my top discussion points are:

  • What do you want to accomplish with your wealth?
  • What's the right structure for managing your family money? How will it be governed?
  • How will your family members be educated about their wealth and held accountable to each other?
  • Do you understand that taxes affect everything? Tax-planning is critical for wealth-preservation.
  • You will need help: a wealth advisor, an attorney, an accountant, and perhaps a family-office or outsourced chief investment officer.


The first - and foundational -- question to answer is: What do you want to accomplish with your wealth?  A sense of purpose is as important in managing family money as it is in managing a business or any other human enterprise.

And it helps to weld a family together.  To keep them engaged, they must find a balance between their common and individual needs.

Read More »

Yale Daily News: Endowment reaches record high

01 / 15 / 2019
by Charles Skorina | Comments are closed

10-01-18 Yale Daily News: Endowment reaches record high

Read More »

Boston Globe: Harvard endowment posts 10 percent return

01 / 14 / 2019
by Charles Skorina | Comments are closed

9-28-18 Boston Globe: Harvard endowment posts 10 percent return

Read More »