Videos

How wealthy families help their children financially is a complex topic, as well as a deeply personal one. More families than ever are working through it.

In 2020 Koda Capital Adviser & Partner James Hawthorne published a paper titled ‘Helping your kids without ruining your life (or theirs)’.  As the wealth in our communities grows, there is extraordinary potential for opportunity but also conflict between the generations.

Adjusted for inflation, there are more than three times as many households with a net worth in excess of $5m compared to 15 years ago. Additionally, families are smaller, meaning individual children are ending up with larger proportions of family wealth.

‘Helping your kids without ruining your life (or theirs): ten issues to consider when passing wealth to the next generation’ is a report that seeks to shed light on a topic that is rarely discussed in the open.

The full paper is available to download from Koda’s site at https://kodacapital.com/insights/helping-your-kids-without-ruining-your-life-or-theirs/

The phrase “diversification is the only free lunch in investing” is attributed to the Nobel Prize laureate Harry Markowitz. Investors accept this principle with few exceptions, however when faced with market turbulence many will retreat to the set of risks that are most familiar to them. In the process they often reduce the diversification of their portfolio and alter the risk and reward dynamics of their investments.

In 2020 Koda Capital Adviser & Partner Michael Massey published a paper titled ‘The Upside of Maintaining Diversification’. This is one of three papers in a trilogy series outlining the principles behind Koda’s investment philosophy: diversification, upside/downside capture and time in the market.

These principles are embedded in the strategies we use to construct client portfolios in a way that ensures investments have appropriate levels of diversification both across and within different asset classes. This balance, when combined with investing through cycles, enables clients to enjoy the benefits of compounding returns over the long term.

The full paper is available to download from Koda’s site at https://kodacapital.com/insights/the-upside-of-maintaining-diversification/

At Koda Capital, we observe that many investors tend to focus attention on the upside potential of their investments. While considering gains and strong portfolio returns is natural for investors, minimising a portfolio’s losses in falling markets is far more important to long term investment success than maximising gains in rising markets.

In 2020 Koda Capital Adviser & Partner Michael Massey published a paper titled ‘The Upside of Minimising Downside’. This is one of three papers in a trilogy series outlining the principles behind Koda’s investment philosophy: diversification, upside/downside capture and time in the market.

These principles are embedded in the strategies we use to construct client portfolios in a way that ensures investments have appropriate exposure to the upside while also minimising the downside. This balance, when combined with investing through cycles, enables clients to enjoy the benefits of compounding returns over the long term.

The full paper is available to download from Koda’s site at https://kodacapital.com/insights/the-upside-of-minimising-downside/

The concept of ‘time in the market’ is to embrace compounding investment returns over the long term. Whilst arguably not as exciting as ‘timing the market’, it is extremely powerful in its ability to grow wealth over time.

Many investors are familiar with common concepts such as ‘compounding returns’, ‘good things come to those who wait’, ‘delayed gratification’ and ‘patience is a virtue’. Practical, sensible and some may say, unexciting advice. A consistent theme we observe in our work advising clients is those who value these concepts are able to invest with confidence, maintain their investments in tough markets and enjoy the benefits of being an investor over the long term.

In 2020 Koda Capital Partner Mike Massey published a paper titled ‘The Upside of Time in the Market’. This is one of three papers in a trilogy series outlining the principles behind Koda’s investment philosophy: diversification, upside/downside capture and time in the market.

The full paper is available to download from Koda’s site at https://kodacapital.com/insights/the-upside-of-time-in-the-market/

Considering asset protection and reviewing wills and estate matters can be a highly emotive process, but it is time well spent. In our experience, when clients seek advice on these topics it provides peace of mind to know that they are well prepared for all the complexities that families and emotions can bring to the table.

Koda Adviser & Partner David Clark recently published ‘Keeping it in the Family’, a podcast episode with David Sekel, a lawyer specialising in asset protection and estate planning. Throughout the episode the two discuss the importance of safeguarding wealth for future generations. David also shares insights from his experience working with families with significant wealth, focusing on creating strategies for wealth preservation and succession.

The ‘Keeping it in the Family’ podcast episode can be found on Koda’s site at https://kodacapital.com/our-thinking/podcasts.

Asset protection and estate planning can be both emotional and technical, but when professional advice is sought early in the process of planning the investment will pay dividends for years, and possibly generations, to come.

Large charitable and non-profit groups often come to the conclusion that establishing an investment portfolio is the right thing to do in the context of their mission and purpose. While some have experience with establishing and managing such a portfolio, many do not.

The 10 steps outlined in this video are structured to help charitable and non-profit leaders understand the process and what it involves.

This video provides an overview of the 2022 Koda paper ‘Establishing an Investment Portfolio’ authored by David Knowles, Head of Koda Capital’s Philanthropy & Social Capital team. The full paper is available to download from Koda’s site at https://kodacapital.com/insights/establishing-an-investment-portfolio/.

Creating financial peace of mind for our clients is our ultimate goal at Koda. When introducing ourselves to prospective clients it’s important we explain who we are and how we accomplish this goal.

More often than not, an investment mandate is at the foundation of the work we do for clients. The mandate covers managing the wealth of our clients, and those clients include executives, business owners, retirees, families, and philanthropic organisations. In addition to offering investment strategy services we also assist with philanthropic advice, tax & structuring as well as family leadership.

Koda is built on three key pillars of independence, staff ownership and working with our clients as a boutique trusted partner.

Our independence eliminates potential conflicts of interest, and it creates an open environment where the focus is purely on advice in the best interest of our clients.

Every Koda employee owns equity in the firm, and through this boutique partnership structure we can act as entrusted long-term advisers. Clients benefit from the alignment that comes with the longevity of their relationships with Koda.

Delivering financial peace of mind allows our clients to enjoy better outcomes for themselves and the people and organisations they support.

Are you prepared for investment opportunities? Volatility in markets can be beneficial for investors who are prepared for when tactical opportunities arise. Volatility can be another word for opportunity.

We all like to think we are prepared, and that we will act on opportunity. It is not uncommon, however, for hesitation to be our first natural reaction to opportunity – and often times even if we are emotionally ready to act, we are not fully prepared.

To invest a meaningful amount of wealth in the market requires preparation. Technical aspects include reviewing current arrangements, advice, structures and plans, facilities and accounts. Emotional aspects include considering how you cope with the many elements you can’t control, and how you deal with uncertainty but stay on track to realise the benefits of being an investor.

At Koda we specialise in the technical and the emotional aspects of investing.

Are you debating how or why you should invest cash currently sitting in an at call account or in a term deposit?

It was only 18 months ago that holding cash generated little to no return. Recent research shows that individuals, families and not for profit organisations are keeping large cash reserves…in cash. A common rationale is that the outlook for assets (such as property, shares, and defensive income producing assets) is uncertain, and cash is safe and at least it’s earning some level of return.

When reviewing cash balances, critical questions to consider include:

1. Are cash rates of return high enough?
2. Are cash rates attractive when we compare them to other assets?
3. When we factor in inflation does the real return still make an investment in cash worthwhile?

More often than not, the answers to these questions highlight investing outside of cash leads to better long term returns and overall portfolio outcomes.

Are you dealing with divorce or the death of a loved one? Making decisions in these trying times can be emotionally and physically stressful. The question of ‘what now?’ comes to mind.

At Koda we have experience guiding and advising people during these difficult chapters in their lives.

As such events bring about change, understanding your response to finances and wealth can help you avoid costly mistakes. In the few months following one of these events, often you are making decisions wholly for yourself and by yourself for the first time in a long time. This presents an extra set of challenges in building confidence, resilience and due care into your wealth decisions.

This Koda paper helps you step through your wealth choices, the ‘must do’ actions and sets the framework for long term thinking at a time when you need to make big decisions. The full paper is available to download at https://kodacapital.com/insights/staying-future-focused-a-how-to-guide-for-wealth-after-divorce-or-death-of-a-loved-one/.

Being able to navigate this challenge with confidence, build resilient wealth and thrive again will help you chart a course for the next steps in life.

Are you considering ESG, Responsible and Impact Investments? Advisers at Koda Capital have taken many families and organisations on this journey.

Along this journey, common questions arise such as:

1. What is responsible investment?
2. Why are investors shifting to responsible investment practices?
3. How do you align your portfolio and your values?
4. How does Koda advise clients on responsible investment?

Koda published ‘Responsible Investment – Using Your Capital for Profit and Purpose’ to help clients answer these questions. The paper also introduces the concept of responsible investment and highlights how this style of investing can help successfully align capital and values. It is a reference point for individuals, families, non-profit organisations and charitable foundations who are curious about responsible investment, its evolution and how it can be implemented. The full paper is available to download at kodacapital.com/insights/responsible-investment-using-your-capital-for-profit-and-purpose/.