Constructing a Passive Global Stock Market Portfolio from a Multigenerational Family Office Perspective

Abstract

This article describes the journey of a family office to create and invest into a global stock market portfolio and get exposure to the world’s growth through equity ownership. We explored many products in the marketplace and considered many prevailing theories on portfolio allocation and optimization. However, we decided to follow our own advice, and set out to build a global equity portfolio that provides balanced exposure to ongoing economic, cultural,and investment growth. We explain here the logical sequence of events, our methodology, and our thinking as we organically arrived at an allocation and rebalancing algorithm from a multigenerational viewpoint. Very importantly, we also provide a description of the practical application to replicate the allocation in a cost-efficient manner by means of ETFs.

TOPICS: Wealth management, portfolio construction, global, exchange-traded funds and applications