Endowment/Foundation Services
The financial world has changed dramatically in the past fifteen yearsWell-publicized stories of corporate scandals, public dissensions and individual fraud have spilled out of the media into our offices and homes. Rigorous new legislative and administrative rules have been established. Moreover, increased public scrutiny has placed even more intense pressure on all boards to rigorously discipline their financial operations and fiscal integrity.
Those responsible for the management of a nonprofit investment organization bear a special burden, which is both ethical and legal, for they are charged with
the preservation of capital and the responsibility to fund the institution’s mission. Time horizons can range from one year to perpetuity. The roles & responsibilities of investment committee members are varied and complex.
Deschutes Investment Advisors’ experienced investment consultants thoroughly understand the seven key issues governing nonprofit investment management.
They are:
Principle One: Objectives - understand the objectives of the
investment funds and create a statement of investment policies.
Principle Two: Payout Policy - how much of the investment
funds must be available to support the institution’s mission annually.
Principle Three: Asset Allocation - Determine the optimum balance
of the portfolio to achieve the targeted level of return at an acceptable
level of risk.
Principle Four: Manager Selection - Select the right investment vehicles for each part of your diversified portfolio
Principle Five: Risk Management - Systematically search for risks in
every facet of the investment program
Principle Six: Costs - Keep asking, “Can we get the same results at lower cost?”
Principle Seven: Responsibilities - Define the roles of the trustees,
of the investment committee, the staff, and consultants – in writing
Contact our senior investment consultants today to assist your organization in establishing and implementing these time-tested principles, to outline a clear and rational way for you to make sound investment decisions while providing your board with best practices on setting objectives and policies for your investment
activities.
“Discipline is the bridge between goals and accomplishments”
– Jim Rohn
– Jim Rohn