UniFi by CAIA Crossing the Threshold - 2

FOREWORD
The FIG Newton and Perpetual Extrusion
William J. Kelly, CAIA, CEO, CAIA Association
A fig is an edible fruit found on small deciduous trees, meaning they shed their leaves upon reaching
maturity. The baby boomers and the generations to follow that have wealth to be managed, take
on deciduous habits of their own. This often comes as a consequence of a liquidity event, multigenerational
needs, or the natural consequence of financial planning for the prodigious savers. They
all realize their savings will shed upon this planning or death when their assets fall or move into the
hands of their intended inheritors.
According to Cerulli, this amounts to a lot of dough. In fact, $5 trillion of annual wealth transfer will
be in motion when we hit this generational cruising altitude, so we should understand the risks,
complexities, and inevitable air pockets we will encounter.
Financial Institutions Group (FIG)
There is another FIG in this narrative which is the broad industry grouping for those
responsible for providing all forms of financial services and products. Think of them as the conduit
to a wide spectrum of financial wares that are sought by the consumer. Alternative investments
have been part of the FIG toolkit for more than five decades primarily targeting differentiated and
non-public solutions for institutional buyers. These institutional clients embraced the opportunity for
broader diversification and the alpha-rich inefficiencies of the private markets in what is commonly
referred to as The Endowment Model. No wonder these attributes define the first two marks of
CAIA's Portfolio For the Future™ as essential components of an investor's guide to effective capital
allocation.
2 FOREWORD

https://caia.org/portfolio-for-the-future

UniFi by CAIA Crossing the Threshold

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