The Atlas Non-Profit strategy is designed to generate returns competitive to those of the large endowments and foundations, with a more cost-effective, liquid and transparent investment implementation. Large endowments and foundations typically rely on illiquid investment implementations as a source of additional return. As the demand for such strategies has escalated, the incremental investment return has been diminishing. In fact, in the ten years through 2020, a simple index portfolio with 70% in global equities and 30% in US core fixed income would have had a higher return than three-fourths of the university endowments. Moreover, heavy reliance on illiquid strategies limits transparency and asset allocation flexibility.
The Atlas non-profit strategy puts the emphasis where it belongs – on asset allocation. We derive portfolios for non-profit clients with the highest expected return relative to risk, and we adjust these portfolios when there are material changes in market risks and opportunities. In implementation of the strategy, the Atlas priority is on liquidity, transparency, and low cost. In this way, we target investment outcomes that are competitive with those achieved by the large and well-resourced non-profit investment organizations.