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Just read a "Investment Policy Statement" for an Investment Trust that I am a trustee of. A medium risk portfolio is being suggested:

- Cash: 5%

- Fixed income and bonds: 20%

- Equities: 60%

- Absolute return funds: 15%

Which is going to be benchmarked for performance against the "MSCI PIMFA", a weighted average of different asset types, updated regularly to match what UK advisors are doing

This benchmark, has a long-term average of 5-6% annualized over 10-20 years (adjusted for cpi ~2-3%)

Whilst at the end, there is the convenient: "Please be aware that past performance is not an indication of future performance. The value of investments and the income derived from them may fluctuate and you may not receive back the amount you originally invested."

The asset management industry...

WTF

It's got so much work to do!

They sell the convenient truth that you're not "regulated", and can't be trusted to allocate your own funds for lack of "skill", calculate their success against a benchmark that conveniently tracks CPI, rather than real inflation rates, and encumber you with vast counter-party risk

Enter Bitcoin

Sound money, self-custodied, blowing benchmarks like the MSCI PIMFA out the water, with drastically reduced counter-party risks

If it was up to me, none of the capital would be in these traditional portfolio's

Point of sharing: this is how the majority of the world's wealth is managed...

Arguably not even protecting purchasing power, but paying the money managers regardless of performance

It's only a matter of time until more figure out Bitcoin

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Discussion

Hard Cap SOLID Cologne 2mo ago

Wow bro… No lie you lost me at cash… I’m a Bitcoiner. So I don’t concern myself with all that nonsense. I enjoy NOT having headaches ⭕️

Jake Woodhouse 2mo ago

Totally fair enough. It’s a traditional trust, so other trustees aren’t bitcoiners. I thankfully persuaded them to take a 10% BTC allocation in q1 2023, which is now worth 30% of the total portfolio.

The point of sharing this suggested allocation is to show how money managers still, just have no idea about the power of Bitcoin

Even my fellow trustees, that have seen it rip in purchasing power, now prefer to “take profits”, if I was willing to let them

Hard Cap SOLID Cologne 2mo ago

👏🏻 well said. Especially since I’m literally reading this while crashing a TradFi “financial literacy meetup” talking about trusts rite now 🤣🤣 mostly just trust fund babies looking to cash out 🙄

Jake Woodhouse 2mo ago

As a trust fund baby, I know that discussion well

Too many chefs in the kithchen, siblings that don’t agree, or a generation that can’t agree with the last

Plus “advisers” that are still skeptical of Bitcoin, because the media buddies tell them to be, and they’re “regulated professionals”, who interestingly have no idea that a thing called sound money even exists

Hard Cap SOLID Cologne 2mo ago

At some point imma hit them with… Tell me about Impermanent Loss via money printing and how that drastically effects all fiat investments BEFORE taxes 🤣😈😈

Nostress 2mo ago

For a split second I thought I was going to see a BTC allocation in the portfolio.

We are so early

Jake Woodhouse 2mo ago

We made a Bitcoin allocation in q1 2023 of 10%

It’s now worth 30% of the portfolio…

The money managers don’t look after that allocation, I do

So their main job tbh is income, which they do quite well, whilst the capital at best tracks inflation

David Pinkerton 2mo ago

Some well-meaning fellas don't get. This advisor rates bitcoin poorly against other investments. Are the "cons" that her lists hard to dismiss?

https://youtu.be/nRL7X4eXBNY

Jake Woodhouse 2mo ago

Well thankfully I persuaded my family and fellow trustees to make a 10% allocation in q1 2023

Which has gone gangbusters since

Totally proven the money managers wrong

In which lies the key, diversificaiton, yes there is short term volatility, but why not take a position and know you don’t have the worst allocation: zero Bitcoin

Frankly, and as you know, “security” and “future uncertainty” are issues for those that haven’t done the work… they will get it on their own time