Foundations and Endowments

Foundations and endowments are typically viewed as long-term and perpetual assets and, as such, are often invested to maximize returns within reasonable risk tolerances. Therefore, we take a much more subtle view and review of the purpose of the assets and determine reasonable risks when creating an investment approach.

We recognize that for beneficiaries of a foundation or endowment, a significant decline in the portfolio will impair the value of distributions. When foundation or endowment portfolios are constructed without considering the distinct purpose of the assets, the ability to maximize distributions can be hindered.

Designing investment strategies to align with an organization’s purpose requires a keen understanding of:

• Spending and disbursement policies, including any – and all – ramifications of not achieving stated goals
• Historical and expected distribution budgets
• Donation history and future fund raising plans and goals
• Financial strength, risk budget and strategic plans of the affiliated organization

These considerations become the basis for forming your investment policy, allocating your assets, creating your risk management strategies, building your portfolio, and selecting your investments. Our customized performance reporting tools then enable us to evaluate and oversee the progress towards realizing the purpose of your assets.

Our institutional advisory professional’s approach is ongoing. Annual reviews and participation on planning and budgeting calls help to ensure the continued appropriateness of your investment strategies.