Divestment is a complex decision, especially when passionate voices are actively seeking to influence change, take an ethical investing stance, and/or ensure that the capital of the institution they care about does not fund or profit from a cause or actions they oppose. This paper by Cambridge Associates offers considerations for how to manage calls for divestment and raises questions that need to be answered to respond clearly and effectively to divestment requests.
Due to the diversity and size of our private client base, we have experience advising on a broad range of investment issues that are unique to these investors. While we carefully customize our advice to reflect the needs and objectives of each private client, we have worked with family members, managers, legal counsel, and tax advisors on investment planning issues such as: - Refining a “tax aware” investment planning approach. - Analyzing pre-tax and after-tax returns for various asset classes as well as the benefits and risks of various investment strategies with respect to taxes. - Creating and improving diversified portfolios aimed at generating increased returns and lower volatility. - Developing strategies for large, single security and asset block holdings. - Implementing investment objectives, policies, and asset allocations for complex trust structures. - Establishing distribution policies and strategies that can support the needs of more than one generation. - Selecting and evaluating investment managers for virtually all traditional and alternative asset classes, including inflation hedging assets.