Welcome to the inaugural edition of FOUNDATIONS

March 5, 2015

We at BULLWEALTH have created this publication for individuals working and volunteering in the charitable and non-profit sectors. Our goal is to help foster an environment of better investment management of the crucial dollars that are entrusted to them. A dollar lost or a dollar left on the table through poor investment performance is a dollar that cannot be used for the myriad of great causes your organizations were created to support.

All non-profits have wonderful people supporting them and serving on their boards and investment committees. They are well-intentioned and pursue their work with integrity and passion. However, when it comes to investing, our observation has been that many of these volunteers are operating in what we call the “DK squared” space. Through no fault of their own, they “Don’t Know what they Don’t Know.” They simply don’t have all the information required to make sound investment decisions.

This is true even when boards and committees have members with significant financial expertise and industry experience. The tools and expertise required to create a portfolio of properly non-correlated asset classes, to populate the portfolio with the best money managers and continually measure and monitor the portfolio would create a significant resourcing challenge for most organizations. This is especially true in a post-2008 environment where traditional approaches to investment management have proved to be glaringly insufficient.

I fear harder questions will be asked of committee and board members during the next great period of market turbulence: “What did you do differently this time?” “Did you fulfill your fiduciary obligations?” BULLWEALTH’s goal is to help organizations create a consistent and disciplined process that transcends the ever-changing make-up of boards and investment committees. In doing so, everyone wins: the volunteers, the organization and, most importantly, the cause itself. article-pixel