Objective investing

Fair fees

Simplified process

Charitable

Is your charitable organization getting its fair share of the market returns?

Many charitable investors and donors in publicly held securities have not earned reasonable returns in relation to the rewards and associated risks.

Probably not – but why?  The primary reasons are subjectivity (greed, fear, euphoria, hubris, etc.) and high fees.

Secondary reasons for poor performance are:

  • Performance standards are all-too-often unnecessarily complicated and lower than investable benchmarks.
  • Fiduciaries do not clearly understand the costs and correlations of their public, alternative, and private market allocations.
  • Results are negatively impacted by subjective valuations, illiquidity, and a lack of transparency (including hidden fees).

As the chart shows, from 1926 to 2018 global fixed income and equity annual returns averaged 5.3% and 9.9%.  However, many investors have not even earned the 2.9% average inflation rate.  Furthermore, ten-year forecasted returns at 3.5% and 5.5% are meaningfully below their historical averages.  To address these issues, Midwest builds all portfolios solely to benefit clients, and encourages investors to consider objective, cost-efficient strategies.*

Global Historical and Forecasted Annual Percent Return Estimates

(before inflation, fees, and taxes)

We can help to improve your return/risk ratio.

Midwest is a member of the Wisconsin Philanthropy Network. To learn more about our Charitable work:

  • To earn competitive returns with small portfolios, Midwest creates and manages passive multi-asset portfolios composed of low-cost index and exchange traded funds.  Active strategies can also be recommended for large portfolios (see our Institutional page).  Both processes are highly efficient, and generally outperform most active managers over time.
  • Each charitable portfolio is customized to your specific goals, highly diversified, and systematically rebalanced.
  • There are no conflicts of interest, as 100% of our revenue is derived from clients.

* All fixed, equity, and inflation rates are estimates and derived from various sources.  Please contact us for details.