OUR DIFFERENCE

The Individual Endowment


Our Modified Endowment Model

Institutional Grade, For
The Individual

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.

 

“So what?”

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 Income10% Diversified Real Estate IncomeEquity-Bond Portfolio
Annual Income4.0%3.8%3.4%
Annual Capital Appreciation2.8%2.8%2.9%
Annual Total Returns6.7%6.5%6.2%
Volatility7.7%7.8%8.8%
Sharpe Ratio0.870.840.71
Research has shown institutional real estate allocations may lower volatility and increase returns.

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.

 

Are you prepared for the New Normal?
Contact Blue Oak today to begin preparing.

There are material differences between the terms under which endowments and individuals can invest in alternative investments. These differences include, but are not limited to commissions and fees, conflicts of interest, access to investment opportunities, size, investment time horizons, and the ability to tolerate illiquidity. There is no standard or exact definition of the endowment model. Portfolio design, specific investments and ultimately performance vary considerably among endowments and investors. Kalos does not claim that any investor will achieve the same result as any endowment, institution, or other investor. Kalos’ Investment Adviser Representatives have a conflict of interest when they recommend securities where they earn a commission as Registered Representatives of Kalos Capital. We address this conflict by disclosing the fees and commissions related to the investments recommended to our clients. Also, Kalos representatives do not earn both advisory fees and brokerage commissions on the same assets.

Securities offered through Kalos Capital, Inc. and Investment Advisory Services offered through Kalos Management, Inc., both at 11525 Park Woods Circle, Alpharetta, Georgia 30005, (678) 356-1100. The Blue Oak Group, LLC is not an affiliate or subsidiary of Kalos Capital, Inc. or Kalos Management, Inc.