Mix it Up to Boost Returns

Most family foundations are established in perpetuity and are unable to raise new capital from outside contributions. To survive, they face a single overriding imperative: They must achieve near double-digit portfolio returns over the long term. We estimate that in order to preserve spending power, foundations on average must generate annual returns in excess of 9.5 percent. This calculation takes

Most family foundations are established in perpetuity and are unable to raise new capital from outside contributions. To survive, they face a single overriding imperative: They must achieve near double-digit portfolio returns over the long term. We estimate that in order to preserve spending power, foundations on average must generate annual returns in excess of 9.5 percent. This calculation takes into consideration that foundations must keep up with inflation and expenses, and also pay out 5

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