Our Approach

Our work with non-profits and endowments focuses on two areas: Investors education and robust portfolio construction.

It is necessary and important that board and staff members understand the investment decisions being made with their funds.

Working with the board and staff allows for greater organizational understanding of portfolio strategies and goals.

Our Portfolios

Our portfolio construction process is driven by two main factors:

  1. Simplicity - We offer simple but elegant and intelligent solutions.  We take to heart the principle that, often the best solution is the simplest solution. Excess complexity is often a way to give the appearance of sophistication and frequently increases fees without increasing returns.
  2. Affordability - High fee funds tend to underperform over time, and fees are a primary driver of portfolio performance. By reducing fees, the long term impacts to portfolio return can be significant.

 

For the majority of non-profits and endowments we find that diversified portfolios invested in ETFs are the best choice. These portfolios are lower in cost than traditional mutual fund portfolios, are more transparent, more tax efficient and over time tend to outperform mutual fund heavy portfolios.

For non-profits and endowments interested in socially or environmentally responsible investing we take a slightly different approach. Quality ESG and SRI ETFs are hard to come by, however there has long been a more robust market for the strategies among mutual funds. Our socially and environmentally responsible portfolios are made up of a combination of well researched mutual funds and the ETFs that are available.

Working With Us

We try and be as flexible as possible in offering our services. Our goal is to build the best working relationship with our non-profit clients regardless of the form it takes.

For some clients we offer asset allocations and they do the rest, and for others we handle all aspects of the portfolio construction and implementation. This lets clients have the level of assistance and guidance they feel most comfortable with.