EFTA02691262.pdf

O 0,11....2:fT Tsinghua University Family Heritage Center EFT,1_02033033 EFTA02691262 Contents • — ntroduction — Wealth Creation in China — Family Heritage and Wealth Planning — Objectives of Founders ■ Tsinghua University Family Heritage Center — Vision and Mission Statement — The Center — Partnership with Experts — Knowledge and Practice — The Orientation Program Overview and Target Audience ■ Appendix: — Kai Feng Foundation — The Orientation Program Framework and Module 1 EFTA_R 1_02033034 EFTA02691263 Introduction ■ Tsinghua University Family Heritage Development & Research Center "The Center") is endowed to Tsinghua University by Kai Feng Foundation "Kai Feng") ■ The Center is the first of its kind in China to promote knowledge of wealth and family heritage — To share best practices among global families of wealth with Chinese wealth owners — To partner with leading academic and professional experts ■ Rapid growth of wealth in China brings significant responsibilities and challenges to wealth owner families ■ By creating one of the finest family heritage and development centers in the world; The Center aims to be one of the most trusted, respected and inspirational intellectual partner for families of wealth EFTA_R 1_02033035 EFTA02691264  Wealth Creation in China ■ Wealth creation over last decade in China has been significant and is set to continue — Today China is the 2nd largest wealth market in the world Number of Wealth Families in China': 2003-2013 (000) 1200 1000 800 24%CAGR 600 400 200 0 I I 2003 2004 2005 2006 2007 2008 2009 2010P 2011P 2012P 2013P AUM (USD Trillion) 0.45 0.58 0.76 1.07 1.62 1.56 2.55 3.08 3.67 4.39 5.14 1 - AUM above 1MN US 4 Source: Wealth Markets in China Report' by BCG (applying 2009 actual number and forecast growth rate of 2010-2013 by BCG) EFTA_R1_02033036 EFTA02691265 Family Heritage and Wealth Planning ■ Today, Chinese wealth owners lack the requisite experience and mature framework to successfully meet the challenges of being major wealth owners ■ Education and development of family heritage is still in its infancy in China — Rapid economic development and political conditions over the past decades have disrupted the continuation of China's family heritage — Development of family heritage has become paramount given the impending generational transition facing China's wealth owners — Programs targeted at Chinese wealth owners that currently exist focus on tangible asset transfer and growth, i.e. family business and wealth management • Lack any coverage of family heritage and growing need to manage intangible assets such as family mission, value and social responsibility — Wealth owners need intellectual support to face challenges of today's world EFTA_R 1_02033037 EFTA02691266 Objectives of Founders ■ Against the backdrop of China's economic development, Kai Feng and Tsinghua University believe it is important to promote the development of family heritage to leading Chinese wealth owners ■ The founders of The Center aim to help wealth owners address three key issues — How to be responsible to oneself, how to be responsible to one's family and how to be responsible to society ■ The founders have a profound understanding of the importance of family heritage and development — Spiritual wealth is fundamental to family wellness and longevity — Ability to achieve harmony between spiritual and material wealth is critical to successful family heritage — Positive development of heritage within China's leading wealth owner families will help drive social progress and harmonious development of society ■ The founders' vision and their global network of wealth owner families and professional experts can enhance the positive influence of The Center EFTA_R 1_02033038 EFTA02691267 Contents ■ Background — Introduction — Wealth Creation in China — Family Heritage and Wealth Planning — Objectives of Founders • - Vision and Mission Statement — The Center — Partnership with Experts — Knowledge and Practice — The Orientation Program Overview and Target Audience ■ Appendix: — Kai Feng Foundation — The Orientation Program Framework and Module 1 EFTA_R 1_02033039 EFTA02691268 Vision and Mission Statement ■ Vision — By being one of the finest family heritage and development centers in the world, The Center aims to be the most trusted, respected and inspirational intellectual partner for families of wealth ■ Mission Statement — Promote awareness of the importance of positive family heritage development — Support the formulation of mature wealth management perspectives and balanced views regarding the responsibilities and challenges associated with wealth for leading Chinese wealth owner families — Provide the highest standard of educational programs with world class faculty and leading international wealth owner families for Chinese wealth owner families — Create a robust research agenda lead by first class academics on best practices for family wealth heritage development — Create an ongoing peer to peer dialogue between Chinese and international wealth owner families for mutual benefit and for the benefit of society EFTA_R1_02033040 EFTA02691269 The Center ■ The Center is a platform for combining knowledge and practice on issues related to family wealth Knowledge • Knowledge generation • Harmonization of material and distribution and spiritual wealth • Peer to peer exchange • Peer to peer exchange between international and between wealth owner local academics families • Combining the worlds of • Bring knowledge to practitioners to academia practitioners EFTA_R1_02033041 EFTA02691270  Partnership with Experts ■ The Center has partnered with the leaders of family heritage and wealth their respective fields — Advisory Board • Comprised of leading international wealth owner families • Family business, legal, tax and banking experts drawn from across the globe — Academic Council • Comprised of prominent international and domestic Chinese thought leaders • Drawn from leading academic institutions from across the globe 10 EFTA_R1_02033042 EFTA02691271  Knowledge ■ Research — Develop in-depth research focused on family heritage issues in China, in the areas of governance, philanthropy, wealth management and case studies ■ Distribution of knowledge — Publish topical books and research studies conducted by The Center for its Chinese client audience — Organize ongoing forums ■ Training — Provide theoretical and practical training in order to help grow a new generation of Chinese academics well versed in subjects pertinent to family heritage ■ Peer-to-peer network of academics — Facilitate exchange between international and Chinese academic experts 11 EFTA_R1_02033043 EFTA02691272  Practice ■ Harmonization of material and spiritual wealth is the core belief of The Center which is deeply ingrained in Chinese culture Spiritual Wealth Family mission, tradition, value, relationship, governance, social responsibilities Material Wealth Family business & wealth 12 EFTA_R1_02033044 EFTA02691273  Practice ■ The Center will create and maintain a peer network of like-minded global wealth owner families that will foster a mutually supportive environment for this group in their life journeys — The Center's Family Heritage Orientation Program creates a common knowledge base and common language among peers — Maintain constant dialogue among peers to share experiences — Organize topic based discussions ranging from heritage and generational issues to investment trends and opportunities among international peer group — Identify opportunities and achieve synergies in family and business practices 13 EFTA_R1_02033045 EFTA02691274  The Orientation Program Overview ■ The Program will promote and educate, in an environment of trust and knowledge, lessons and practical experiences in all issues relating to spiritual and material wealth to the leading Chinese wealth owner families — Leading international academic experts as presenters — Global wealth owner families providing practical experiences ■ The Program, with the overarching theme of "Understanding The Challenges, Opportunities and Responsibilities as a Wealth Owner, a Business Manager and a Family Member" will consist of four modules to be conducted over a four month period 1) Harmonization of spiritual and material wealth is critical to flourishing family heritage 2) Support infrastructure for a wealth owner family 3) Family governance and ownership strategy 4) Practical experience of international family exchange ■ Modules I through III will be held in China, Module IV will be h 14 internationally EFTA_R1_02033046 EFTA02691275  The Orientation Program Target Audience ■ The Program is designed for the leaders of wealth owner families of China — Drawn from top 500 Chinese wealth owner families • In China, due to its relatively short period of entrepreneurship and economic development, many family businesses are still controlled and managed by the first generation patriarch ■ Each annual program will have between 15-20 Chinese wealth owner participants, all who share a common "mindset" — Concerned about issues surrounding their family heritage — Prepared to learn and customize international best practices in wealth management to their personal situations — Thinking through matters relating to wealth structuring and transfer — Socially responsible and involved entrepreneurs — Not in sensitive industries or government related professions 15 EFTA_R1_02033047 EFTA02691276  Contents ■ Background — Introduction — Wealth Creation in China — Family Heritage and Wealth Planning — Objectives of Founders ■ Tsinghua University Family Heritage Center — Vision and Mission Statement — The Center — Partnership with Experts — Knowledge and Practice — The Orientation Program Overview and Target Audience • — ai eng oun • ation — The Orientation Program Framework and Module 1 16 EFTA_R1_02033048 EFTA02691277  Kai Feng Foundation ■ Kai Feng's vision is to promote the humanities and social development in China with programs in education, science and culture, through donations and sponsorships to leading universities and NGOs - Tsinghua University Donated Kai Feng Humanities library to Tsinghua University, opened in April 2011 Endowed Development Research Institute and Family Heritage Development and Research Center Sponsored establishment of Classical Chinese Studies department A number of scholarships including Kai Feng Scholars, Tsinghua Friends — Kai Feng Fellowship, and Kai Feng Scholarship for MPA in Social Management — Harvard University • Established the Desmond and Whitney Shum Fellowship at The Fairbank Centre for Chinese Studies — NGOs • Sponsored a number of projects to NGOs which include China Youth Employment and Entrepreneur Foundation, China Social Organization Promotion Association, and China Non-Public Fund Forum 17 EFTA_R1_02033049 EFTA02691278 The 2011 Orientation Program Framework Module I Module II Module III Module IV Oct 19th -24th 2011 Nov 19th-20th 2011 Dec 17th-18th 2011 February 2012 Structure Class Dialogue Dialogue International Family Host Modules Harmonization Support Infrastructure for Family governance and Practical experience of between spiritual and a wealth owner family. ownership strategy. international family material wealth is exchange. I critical to flourishing family heritage. Content Introduction to holistic Guiding families through For participants to First hand experiences view of family wealth wealth management determine family with international and heritage. The infrastructure options governance and wealth owner families; importance of family to available (legacy banks relationships, to their businesses, preserving and vs. family offices) achieve family goals, managing their wealth developing family learning best practices to determine ownership and their philanthropic wealth. manage each option. structures and policies practices. for family businesses. Location Beijing, China China China US & Europe Duration 5 days 1 day 1 day 7 days EFTA_R1_02033050 EFTA02691279  The Orientation Program - Module 1 ■ The Orientation Program's overarching theme of "Understanding The Challenges, Opportunities and Responsibilities as a Wealth Owner, a Business Manager and a Family Member" ■ The first module of the program will focus on "Harmonization between spiritual and material wealth is critical to flourishing family heritage" ■ Module I will cover four areas with the Chinese wealth owner participants — Family Continuity and Governance — Stakeholder Ownership and Control — Dynamic Wealth Preservation and Enhancement of Family Assets — Family Financial Security and Wealth Transfer ■ Module I will be conducted over 5 days with leading international families, expert academics and professionals sharing their knowledge and exchange experiences with the Chinese wealth owners 19 EFTA_R 1_02033051 EFTA02691280 Thank you EFTA_R1_02033052 EFTA02691281