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Investment Office at Fiducient Advisors: Creative and Flexible Management Solutions for Today’s Nonprofits

March 4, 2021

By Matthew Porter

Managing Partner,
Head of Endowments and Foundations

Matt joined Fiducient Advisors in 1998. Matt is a Managing Partner and Head of Endowments and Foundations. As Head of Endowments and Foundations, Matt challenges firm members to think about …

These days, we are witnessing a trending increase in requests from clients and prospective clients for an outsourced consulting model or partially outsourced consulting model in which clients maintain some control over investment decisions but outsource the implementation and rebalancing functions. This heightened attention to an Outsourced Chief Investment Officer (OCIO) model is consistent across the industry.

Outsourcing does make good business sense for many nonprofit organizations that are looking to reduce costs, improve efficiencies, mitigate potential risks and achieve better outcomes. To assist with these goals, nonprofits often enlist the assistance of the Investment Office at Fiducient Advisors. Usually, clients request guidance from Fiducient Advisors for the following reasons:

• Changes to traditional revenue sources
• Crisis management
• Capital campaigns
• Demand for increased staff capacity or capabilities
• The need for customized solutions that require innovative thinking and leading practices

Fiducient Advisors’ clients span a wide range of organizations, including:

✓ Endowments
✓ Foundations and Charitable Organizations
✓ Health Care Organizations
✓ Associations
✓ Educational Institutions
✓ Religious Institutions

Fiducient Advisors Investment Office
Implemented Services
Fiducient Advisors Implemented Services are for advisory clients who want to retain investment oversight and decision-making authority for their portfolio while outsourcing administrative and operational management. This enables nonprofit executives to dedicate their time to advancing the mission of their organization. Overall, the Investment Office becomes an extension of the client to manage and execute critical functions, such as:

✓ Trading
✓ Cash movement
✓ Portfolio rebalancing
✓ Investment policy statement compliance
✓ Contract and document management
✓ Private equity and hedge fund agreements
✓ Capital calls and distributions
✓ Audit support

Outsourced Chief Investment Officer Service
In the fullest expression, our OCIO Service collaborates with the client to define the investment goals and expectations; understand broad and specific needs for liquidity, cash flow and spending; and set the guidelines for success. With client parameters established, Fiducient Advisors OCIO experts assume complete portfolio management authority, including:

✓ Fully customized portfolio aligned with client mission and goals
✓ Focus on maximizing potential return while minimizing risk and reducing cost
✓ Custody solutions specifically negotiated for our OCIO clients
✓ Immediate execution of investment decisions
✓ Portfolio oversight by both the client portfolio management team and the Discretionary Committee
✓ Clearly defined fiduciary responsibilities managed through our governance calendar
✓ Assistance with capital campaigns
✓ Spending policy analysis and recommendations

By engaging the Investment Office at Fiducient Advisors to serve in an Implemented Services or OCIO capacity, clients are able to devote more time to the nonprofit’s mission. Most importantly, doing so means they can expect better outcomes.

If you would like to learn more about the Investment Office, please contact Chris Coleman.

All information as of June 30, 2020.

The information contained herein is confidential and may not be disseminated or distributed to any other person without the prior approval of Fiducient Advisors. Any dissemination or distribution is strictly prohibited. Information has been obtained from a variety of sources believed to be reliable though not independently verified. Any forecasts represent future expectations and actual returns, volatilities and correlations will differ from forecasts. This report does not represent a specific investment recommendation. Please consult with your advisor, attorney and accountant, as appropriate, regarding specific advice. Past performance does not indicate future performance and there is a possibility of a loss.

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