Is your non-profit organization getting its fair share of the market returns?
Many non-profit 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 persistent subjectivity, egregious annual fees, and the current status of America’s financial system.
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 2022 global fixed income and equity annual returns averaged 5.0% and 10.2%. However, many investors have not even earned the 2.9% average inflation rate. Furthermore, ten-year forecasted returns at 4.6% and 8.0% 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.
- 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 non-profit 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 content copyright © 2023 Midwest Asset Management, Inc. All rights reserved.