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Frequently Asked Questions By topics
Welcome to the NOVA Global Family Office FAQ page. Here we have compiled answers to frequently asked questions about our services, processes and the values that underpin our approach. Whether you are an existing client or exploring our services for the first time, our FAQs are designed to address your concerns and enhance your experience with NOVA.
Wealth Management FAQ
What is wealth management?
Wealth Management is a comprehensive service for affluent individuals and families focused on protecting, preserving and growing their assets. Investments are tailored to the client's objectives, whether they are short-term or long-term. Beyond investments, wealth management can extend to a range of services that address an individual's or family's long-term goals.
What is estate planning and why is it important?
Wealth planning, as it is commonly defined in the wealth management industry, takes a holistic view of an individual's circumstances, seeks to understand their aspirations and provides guidance. Individuals or families may face very different circumstances at different stages of their lives (e.g. relocating, getting married, having children, divorcing, buying or selling a valuable asset or preparing for succession). Multi-jurisdictional exposure is a complexity that may also need to be addressed most of the time these days. By first identifying the client's potential tax and legal framework, a wealth planner can then act as a single point of contact to provide the client with an overview of suitable options in different areas and countries, and oversee the potential actions to be taken. For a tax or legal opinion, they would turn to a network of external providers.
What is family advisory?
Family advisors assist and guide wealthy families in building a customized governance system to ensure intergenerational partnership and work toward the family's long-term goals. This includes identifying the purpose of the family's wealth - the values and goals its members share - and how to pass them on. Advisors can work with the family to create a family charter, which serves as a written record of the family's heritage, culture, values and goals, and provides a framework for conflict resolution.
How to preserve my wealth?
Wealth preservation means different things to different people. Depending on their circumstances, an individual may want to protect against geopolitical or environmental risks, or plan for a family transition. The first step for a wealth manager is to define what wealth preservation means to his or her client and to identify the risks involved. Based on this assessment, the manager can then use investment, advisory or wealth structuring services to design the best solution for their client.
Asset Management FAQ
What is asset management?
Asset management involves assessing risks and finding opportunities to build a portfolio of investments for wealthy individuals, corporations, governments or institutional investors. The primary goal of an asset manager is to increase the total value of the assets under management while meeting the financial objectives and risk tolerance of the client.
What is active management?
Unlike passive equity investing, where an investor tries to match rather than beat the performance of certain indexes, active investing means investing in funds whose portfolio managers select investments based on an independent assessment of their value. In essence, an active manager is trying to pick the most attractive investments. We are active managers because we believe that the widespread use of passive investment tools could prove economically inefficient by misallocating capital and increasing systemic risk.
What is fixed-income investing?
Government and corporate bonds are the most common types of fixed-income assets.They are known as fixed-income because they pay out a set level of cash flows to investors, typically in the form of fixed interest or dividends. Its main attraction stems from the fact that the payments of a fixed-income security are known in advance and usually remain fixed throughout. Generally speaking, this strategy allows you to mitigate market risk, earn passive income, and preserve capital.
What is multi-asset investing?
Multi-asset strategies invest in a variety of asset classes, such as bonds, commodities, real estate and equities, and can be a good option for investors seeking a flexible range of investment tools to manage risk and pursue growth opportunities as market conditions change. Unlike standard balanced funds, where performance is measured against a specific benchmark, a multi-asset strategy focuses on a specific outcome - such as a target return above inflation.
Asset Management FAQ
What are alternative investments?
Alternative investments are strategies that go beyond holding stocks, bonds or cash. They include hedge funds, private assets (private equity, private real estate and private debt), commodities, managed futures and other derivatives, as well as specialized investment areas such as fine wine or stamps. They are typically used by investors seeking greater diversification or higher potential returns.
What is a hedge fund?
The term hedge fund is often used loosely, but typically refers to a type of investment company or private partnership that takes unconstrained long or short positions across asset classes and uses more sophisticated financial instruments such as derivatives. Today, the industry encompasses many approaches, from activist equity investors to multi-strategy quantitative traders.
What is private equity?
Private equity (PE) refers to investments that represent a stake in a privately held company whose shares are not listed on a public exchange. Private equity capital is raised from private and institutional investors and can be used to finance start-ups (venture capital), acquisitions (growth equity, buyouts) or to strengthen a balance sheet (special situations).
What is a real estate fund?
Real estate funds invest directly in commercial property, which could include offices, retail or industrial assets. The funds seek to make a return by taking rent from tenants and from the capital appreciation of the properties.
What is private debt?
Private equity (PE) refers to investments that represent a stake in a privately held company whose shares are not listed on a public exchange. Private equity capital is raised from private and institutional investors and can be used to finance start-ups (venture capital), acquisitions (growth equity, buyouts) or to strengthen a balance sheet (special situations).