What do you want your wealth to achieve?
Over the course of Oxford’s history, our clients’ goals and objectives have become more sophisticated, causing an evolution in our own approach to providing innovative and customized solutions. While diversification is central to diversifying risk, many clients want to commit a portion of their portfolio to strategies that offer opportunities for out-sized investment gains compared to a well-diversified approach.
Aspirational investing refers to those investment strategies that provide this potential. These investments may enable families to enhance their lifestyle and advance to the next tier of wealth. Or, a family may want to grow assets to support legacy planning and transfer wealth to future generations. Sometimes a client might be passionate about philanthropic missions—and, the more they can grow their capital, the greater the charitable outcome.
Aspirational investments are aggressive strategies featuring the potential for returns well above those generated by the public markets. They are accompanied by higher risks, increased fees, illiquidity and long-term holding periods. Investments may include private equity (investments in operating companies), real estate (commercial, retail, apartments) or real assets such as energy (oil and gas drilling).
Clients allocate a portion of their portfolio in support of aspirational goals—generally, from 15% to 50% or more of a total portfolio. It is a very personalized, customized wealth allocation decision that takes into account a portfolio’s specific goals, risk tolerance and illiquidity tolerance.
Over time, we have expanded our recommendations of aspirational solutions to include Savile Row Private Equity, The Mayfair Initiative and most recently Regent Street.
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