Family Offices and Goals-Based Investing
Free CAIA Level II lesson in Institutional Asset Owners. 33 min read, ~4,948 words.
Family offices are single-family or multi-family: an SFO serves one family (about 60 bps of AUM per year), and an MFO pools UHNW families holding over $30-50 million to share costs. Generation drives allocation: first-generation new money preserves concentrated wealth, second-generation and beyond old money grows wealth with an after-tax...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- institutional owners
- saa risk return
- aa objectives constraints
- ips purpose roles
- ips return risk spending
- ips aa manager selection
- defining endowments
- intergenerational equity
- endowment model
- large endowment performance
- endowment risks
- liquidity rebalancing taa
- tail risk
- pension development types
- pension risk tolerance aa
- defined benefit
- social security
- db vs dc
- annuities retirement
- sovereign wealth sources
- swf types
- swf establishment mgmt
- swf governance political
- swf analysis three
- identifying family offices
- fo goals benefits models
- fo generational goals
- fo macro exposures
- fo income taxes
- fo lifestyle assets
- fo governance
- charity philanthropy
- goals based investing
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