For foundations and endowments, we offer OCIO services whereby we manage the investment program, drawing on our years of experience in CIO roles at large and sophisticated plan sponsors. We raise the probability of successful outcomes due to our focus on intelligent asset allocation, transparency, and low cost.
A large body of evidence supports the idea that endowments with heavy allocations to alternative investments are underperforming, losing ground to simple index strategies. High costs, increased competition, and outdated perceptions of superiority are taking a toll.
For example, the National Association of College and University Business Offices (NACUBO) survey of college endowment results show the median endowment returns for 5 and 10 years are 8.1% and 6.7%, respectively. A simple 70/30 equity/fixed configuration would have done as well, returning 8.0% for five years and 6.9% for ten years.*
The largest endowments, the ones with the most alternatives, have performed the worst on a one- and three-year horizon. The evidence is mounting that, on average, the cost and complexity of active and alternative investment strategies is no longer leading to better returns for investors.*
It’s time for a reset—and we’re uniquely positioned to provide a better solution. Based on our own decades of experience with the “endowment model”, we believe it’s the right time to consider:
We work with you to review or create a detailed plan we’ll implement and revisit regularly to achieve:
Risk to achieving your financial objectives can take many forms and may not be limited to the investments we manage. We offer tax efficient solutions to reduce your risks.
We provide full portfolio solutions across asset classes, as well as stand-alone equity, fixed income and balanced strategies. We excel in the most important portfolio input: asset allocation. We are a direct investor in securities, cutting out the middleman and lowering your fee burden.
Our approach offers:
Portfolio management services include:
Many nonprofits have a substantial portion of their net portfolios in illiquid concentrated positions, such as private equity and venture capital. We are proficient at helping clients develop a risk-aware plan for the concentrated position while devising a strategy for the remainder of the investment portfolio that best complements the concentrated position(s).