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jerryking : impact_investing   22

Family offices are in a talent grab for young impact investors
OCTOBER 15, 2018 | Financial Times | Madison Darbyshire.

While the number of family offices managing assets at this scale is small — assets under management of a family office average about £300m, says Heather Jablow, head of global private client practice at Cambridge Associates — the trend of family offices turning to impact investing is growing — and quickly.

Some $22.89tn in assets were held globally in socially responsible investments as of 2016, up 25 per cent from 2014, according to the Global Sustainable Investment Alliance. Many family offices see impact investments, such as environmental funds and fossil fuel alternatives, as logical, smart investments for the future.

“If it were just about values, it wouldn’t have the legs that it has,” says John Goldstein, a managing director with Goldman Sachs Asset Management, who focuses on impact.

As impact investing becomes a priority for younger generations, family offices are becoming a more desirable destination for recent graduates looking to work in finance. Deserved or not, “it’s almost like family offices have this kind of halo now because they’re doing sexy things with their capital”,......Sometimes family offices hit upon an investment strategy that is so successful that they look to create funds around that strategy. Take the Wimmer family office, for example, which takes a three-pronged approach to investing. Its investments include property, SME lending, exchange traded-funds and investing in external hedge funds to yield what it calls an attractive return for its level of risk.
family_office  halo_effects  high-impact  impact_investing  mission-driven  social_impact  talent 
october 2018 by jerryking
When a $1,000 Gift Is Better Than $1 Million - The New York Times
By Paul Sullivan
Aug. 17, 2018

Smaller, local gifts are part of a trend of philanthropists narrowing their focus so they can feel like their donations matter, said David Callahan, founder and editor of Insider Philanthropy and the author of “The Givers: Wealth, Power and Philanthropy in a New Gilded Age.”

“In this age of big philanthropy, when so many billionaires and foundations are active, donors at a more modest level can feel like their money might not count as much when directed to issues like climate change or global development,” Mr. Callahan said.

“Even if you have a $100,000 a year to give, it can feel like a drop in the bucket compared to what Bill Gates or Mike Bloomberg is giving,” he added. “But that kind of money can have a big impact if you’re giving to local food pantries or schools.”.....The KentPresents festival, in its fourth year this weekend, attracts Nobel laureates, secretaries of state, academics, artists and journalists discussing topics as varied as global affairs and visual arts. The festival is the brainchild of Benjamin M. Rosen, a venture capitalist in the 1980s and ’90s and former chairman of Compaq, and his wife, Donna.......modeled the event on the Aspen Ideas Festival, an annual gathering of intellectual luminaries in the Colorado ski town, but he said he wanted to distribute the money the festival raised to small, little-known nonprofit organizations.
books  high_net_worth  philanthropy  bite-sized  impact_investing 
august 2018 by jerryking
Thane Stenner: Here’s where the wealthy get their investment ‘edge’
Mar. 02, 2016 | The Globe and Mail | THANE STENNER.

They have clear investment goals: High-net-worth individuals are obsessive goal setters. They always know why they’re investing (beyond “to make money”). They reverse-engineer their return objectives to meet both long- and short-term goals.

They know when to delegate: High-net-worth investors are not “do-it-yourself” investors.

They think risk first: High-net-worth individuals are generally focused on wealth protection as much as wealth generation.

It’s business: In general, high-net-worth investors tend to be good at “segregating” their emotions from their investment decisions.

They keep the news in perspective: Most wealthy individuals are news junkies. Of course they listen to, digest, and consider a lot of financial news. But the focus of their attention is on long-term trends, not necessarily up-to-the-minute financial data. And they think very, very carefully before making any decision based on news.

They seize the opportunity in crisis: Most high-net-worth individuals are born contrarians.
high_net_worth  slight_edge  investing  investors  rules_of_the_game  Thane_Stenner  goal-setting  contrarians  reverse_engineering  wealth_protection  kairos  impact_investing  passions  passion_investing  calm  Carpe_diem  Michael_McDerment  thinking_deliberatively  thinking_backwards  work-back_schedules 
march 2016 by jerryking
When Impact Investing Stays Local - The New York Times
JULY 17, 2015
Photo

Rob Houghton, left, and James Houghton found a way to give some of their wealth back to Corning, N.Y., the town that helped make Corning, their family business, a success. Credit Porter Gifford for The New York Times
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Continue reading the main story
Wealth Matters
By PAUL SULLIVAN
Corning  impact_investing  philanthropy  wealth_management  high_net_worth  family_business 
july 2015 by jerryking
How to Leave a Mark - NYTimes.com
JAN. 27, 2015 | NYT |David Brooks.

Impact investors seek out companies that are intentionally designed both to make a profit and provide a measurable and accountable social good. Impact funds are frequently willing to accept lower financial returns for the sake of doing good — say a 7 percent annual return compared with an 11 percent return. But some impact investors are seeking to deliver market-rate returns....It’s hard to find a reliable way to measure the social impact of these dual-purpose companies. Impact investors have also had trouble finding scalable deals to invest in. It costs as much to do due diligence on a $250 million deal as on a $25 million deal, so many firms would rather skip the small stuff... impact investing is now entering the mainstream. An older generation used their (rigorous) business mind in one setting and then their (often sloppy) charity mind in another. Today more people want to blend these minds. Typically a big client, or a young heir, will go to his or her investments adviser and say, “I want some socially useful investments in my portfolio.”...Impact investing is not going to replace government or be a panacea, but it’s one of a number of new tools to address social problems. If you want to leave a mark on the world but are unsure of how to do it, I’d say take a look. If you’re a high-net-worth individual (a rich person), ask your adviser to get you involved. If you’re young and searching, get some finance and operational skills and then find a way to get involved in a socially useful investment proposition. If you’ve got a business mind, there are huge opportunities to build the infrastructure (creating measuring systems, connecting investors with deals).
David_Brooks  capitalism  impact_investing  hard_to_find  Michael_McDerment  high_net_worth  new_graduates  skills  passions  passion_investing  TBL  social_impact  measurements  high-impact  heirs 
january 2015 by jerryking
Heiresses Get Down to Business - WSJ.com
September 21, 2007 | WSJ | Robert Frank

Heiresses Get Down to Business
Today's Young Rich Skip the Lunching, Launch Companies.

A new generation of heiresses is redefining what it means to be a socialite. Rather than trying to climb the social ladder through charity work and elaborate parties, today's rich and restless want to make their mark in the business world. They don't want to be ladies of leisure; they want to be ladies of commerce, more interested in creating their own brands than making the A-list.
Robert_Frank  entrepreneur  entrepreneurship  product_launches  high_net_worth  brands  personal_branding  impact_investing  social_impact  women 
august 2012 by jerryking
Wealth Matters - The Rules That Madoff’s Investors Ignored - NYTimes.com
January 6, 2009 | | By PAUL SULLIVAN.

THE 10 PERCENT RULE The saddest Madoff stories are the ones about life savings lost. These were people who had, say, $5 million in one of his funds and now have nothing. Honestly, the people themselves need to bear some responsibility for this. The most basic book on investing will tell you never to put more than 5 or 10 percent into any one investment, particularly one meant to preserve wealth…Having a concentrated stock position when you’re working for a company is sometimes unavoidable. If you were a senior executive at Lehman or Bear Stearns, a part of your bonus was paid in shares, and such restricted stock needs to be held for a period of time, generally two to seven years. Having a concentrated position in other circumstances, however, is foolish. Any responsible wealth manager works to reduce or hedge a person’s concentrated stock position. With Mr. Madoff, investors went the other way and added money year after year. Discipline is key: stick to 10 percent or less and remember that any investment can go bust.
CONSISTENCY IS BAD - Consistency at the highest level isn’t bad; it’s impossible. There are too many variables that inhibit being great on a regular basis.
THE GRAND FALLOON Kurt Vonnegut coined this phrase in “Cat’s Cradle,” and never did it have a more devastating application than in the Madoff scheme. In Vonnegut’s world, a grand falloon was a false association mistaken for friendship — two people from the same town, same university, same company meet somewhere and believe that coincidental connection has significant meaning. It doesn’t, no more so than belonging to the Palm Beach Country Club or the Fifth Avenue Synagogue did for those who used their proximity to Mr. Madoff to coax him into taking their money.
This is a crucial point particularly in opaque investments, from hedge funds to private equity partnerships: just because someone is a good golfer does not mean he should be trusted to invest your money. Private bankers are forever telling their clients not to try to get into someone’s hedge fund just because you enjoyed their conversation on the course — or, worse, want to play with them again. Like taking care of your health, picking an investment adviser should be done with the utmost rigor.
‘DON’T ASK, DON’T TELL’ - Ask questions and don’t assume the person who brings an investment to you has vetted it. Nothing in which you are putting millions of dollars is so wonderful that it cannot withstand scrutiny.
PUT MONEY IN BUCKETS - follow the popular wisdom of private bank investment strategists: divide your money into buckets to insure the money you need to live on will always be safe. Most strategists advise putting your riskiest assets into your philanthropy bucket.
Bernard_Madoff  high_net_worth  fraud  mistakes  opacity  friendships  trustworthiness  diversification  biases  personal_finance  financial_planning  grand_falloon  wealth_management  concentrated_stock_positions  high-risk  philanthropy  due_diligence  passions  passion_investing  impact_investing 
october 2011 by jerryking
MaRS to launch Centre for Impact Investing -
Sep. 28, 2011|The Globe and Mail|Tara Perkins

The Centre for Impact Investing that is being announced Thursday in Toronto will be launched with $1.3-million of financing from the Rockefeller Foundation and the J.W. McConnell Family Foundation.

The total Canadian impact-investing market is currently $2-billion, according to MaRS, but is expected to grow to $30-billion in 10 years. Proponents, such as the Canadian Task Force on Social Finance, say governments must make a number of regulatory changes and buy into the concept before it can take off.
Tara_Perkins  impact_investing  MaRS  social_impact 
september 2011 by jerryking
Be The Advisor Who Helps Business Owners Respond To Change
Dec 1, 2008 National Underwriter | Life & Health | by John H Brown.

The US and world economies are changing fast. As an advisor to business owners, you know that, as a group, they are not as uneasy about the stock market's wild fluctuations as are the rest of your clients. You must reach out to your business owner clients. It is your job to understand that owners can still achieve their goals, to implement the strategies necessary to reach those goals and to share that information with your clients. Once business owners are clear about their objectives, you can evaluate the business and personal financial resources available to fund those objectives. Central to any company's planning is the need to motivate management to attain specific performance standards, such as meeting budget or reaching a specific sales goal or perhaps a departmental profitability objective. The current financial storm is not life threatening for most of your business owner clients -- if they respond.
ProQuest  financial_advisors  small_business  JCK  entrepreneur  passions  passion_investing  impact_investing  indispensable  owners  generating_strategic_options  objectives  control_systems  rewards 
february 2010 by jerryking
Philanthropists Set Spending Deadlines - WSJ.com
MAY 21, 2009 | Wall Street Journal | by SHELLY BANJO. A
growing number of philanthropists are adopting spending deadlines and
sunset provisions to ensure urgent global needs are addressed in a
timely way.

By granting the entirety of funds within a certain period of time, these
charitable efforts are looking to have a bigger immediate impact than
traditional foundations, which are typically set up to last forever and
pay out roughly 5% of assets a year.
philanthropy  Shelly_Banjo  benefactors  high-impact  impact_investing 
may 2009 by jerryking
Giving Till It Works - WSJ.com
Oct. 10, 2008 book review by Richard J. Riordan which looks at
the rise of billionaires who increasingly, are attempting to apply the
lessons of business success--monitoring investments, measuring
results--to their charitable efforts.
books  moguls  book_reviews  charities  entrepreneurship  capitalism  nonprofit  philanthropy  Eli_Broad  billgates  benefactors  passions  impact_investing  social_impact 
january 2009 by jerryking

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