The Individual Endowment
Our Modified Endowment Model
Institutional Grade, For
For decades, pensions and endowment strategies leveraged by institutions such as Yale, Harvard and Stanford have enjoyed unparalleled returns by dividing assets among multiple investment categories.
This risk reducing, higher-yielding ‘Endowment Model’ has simply been out of reach for the individual investor, who had to settle into a traditional, ‘60/40 Stock & Bond,’ approach — until now.
— Andy Topka
The Endowment Model
Tradition Needs To Change
The mutual fund, 60/40 stock and bond approach has worked well for investors over the last 50 years. However, the landscape of financial options have shifted to offer individuals access to the alternative asset classes large institutions have utilized for decades. The Individual Endowment Model is built to take advantage of the opportunities this shift presents.
Change is Good
Embrace the New Normal
For decades, pensions like CalPERs (California Public Employees’ Retirement System) and college endowments like Yale, Harvard, Stanford and Notre Dame have diversified their portfolios beyond the limitations of traditional asset classes (stocks, bonds, cash) and achieved a greater “risk versus return” performance. The inclusion of many asset classes that perform very differently from one another is intended to steady portfolios through ALL market cycles.
De-Risking through Diversification
History has shown that by incorporating alternative asset classes, such as real estate, increases long-term returns while reducing overall market risk.
Reduced Risk Through Diversification
|20% Diversified Real Estate Income||10% Diversified Real Estate Income||Equity-Bond Portfolio|
|Annual Capital Appreciation||2.8%||2.8%||2.9%|
|Annual Total Returns||6.7%||6.5%||6.2%|
You’re not them.
You deserve better.
Unlike the large institutions, you don’t have a multi-billion dollar portfolio and a 50 year time horizon in which to manage it. However, we believe you deserve more than a “plug and play” portfolio. Blue Oak develops a custom investment philosophy for each client by introducing the additional asset classes most appropriate for their individual goals. Our Individual Endowment Model accommodates for the liquidity, income, and tax efficiency needs of our investors.