Category: Foundations
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Myths and Realities of Private Equity Diversification
The global economic landscape is filled with idiosyncrasies. One of these is that low interest rates can lead investors to take higher risks. A popular misconception, largely influenced by such an environment, is the role of private equity (PE) in portfolio diversification. Let’s delve into the nuances of this, especially for keen investors in private…
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Five Dimensions of Impact Investing
Family offices, often responsible for managing the wealth and investments of wealthy families, are increasingly incorporating impact investments into their portfolios. Recognizing the importance of not just financial returns, but also social and environmental impact. These investors are redefining the very essence of “returns on investment”. The Global Impact Investing Network’s (GIIN) five dimensions of…
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Empowering Charities: Bookkeeping for Charitable Foundations
Bookkeeping for charitable foundations isn’t just a good practice—it’s pivotal. And thankfully, efficient bookkeeping for your charitable foundation can be easy. But for success, you need a partner who understands the specialized demands of charities to ensure your foundation maintains compliance. Before we begin, let’s put your financial knowledge to the test with our free financial…
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Multi-Generational Wealth Management: Strategies for Success
When it comes to multi-generational wealth management, is financial wealth the only capital worth cultivating? While financial capital is significant, considering various aspects of capital, including human capital and leadership, is essential to successfully transition wealth across generations. This post explores some strategies that can aid the transition of wealth to heirs and unearths the…
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Index Funds: A Path to Consistent Returns and Lower Costs
It’s a common misconception that average investors will earn an average rate of return. Unfortunately, the reality is far from this ideal. Multiple factors contribute to the disconnect between the expected return and the actual return that the average investor achieves. The average market return can be achieved by investing in passive index funds. Surprisingly,…
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Portfolio Rebalancing Strategies: Optimize Your Investments
Portfolio rebalancing is the process of realigning the weightings of a portfolio to maintain a desired allocation. Over time, as various investments perform differently, a portfolio can drift away from its initial target allocation. So, to correct this, portfolio rebalancing involves selling a portfolio’s best performing investments and using those proceeds to purchase more of…
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Building Your Portfolio: Core-Satellite Strategy Demystified
A Core-Satellite portfolio approach breaks down an investor’s portfolio into two main components: the “core” index funds and the “satellite” active components. The core typically consists of a broad-based market index or a diversified fund that seeks to mimic the returns of the whole market or a benchmark. This core is expected to provide diversification…
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Succession Planning for Private Foundations & DAFs
Private foundations are a popular avenue for many high net worth individuals who want to actualize their philanthropic ambitions. In Canada, we have over 6,000 registered private foundations and many more donor advised fund (“DAF”) accounts. But, while setting up a private foundation is an exciting milestone for many charitable donors, an embodiment of their…
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Simplicity and Success: The Power of Buy-and-Hold
In the ever-evolving world of investment strategies, it’s easy to get lost amidst the myriad of complex theories and tactics touted by experts. Yet, time and again, history has shown that there’s profound strength in foundational principles. At the heart of these principles lies the concept of buy-and-hold investing. This approach not only champions the…