Due to their unique withdrawal and spending requirements, foundations, while similar to other long term funds, are also uniquely different.
Each foundation requires the integration of its individual spending plans with a long-term strategic approach, tactical adjustments over time and a sophisticated ongoing cash management strategy. This quantitative approach is stochastically modeled, tested and integrated with a prudent Investment Policy to increase the probability of meeting the unique spending and distribution goals while maintaining and growing the corpus of the fund. Performance Reporting is benchmarked and done at the portfolio, asset class and individual manager level to ensure accountability and transparency throughout the relationship.
Oversights many foundations make:
- Failing to adequately diversify
- Holding too much cash
- Ignoring inflation
- Overemphasizing liquidity
- Misunderstanding risk
- Overemphasizing income-producing investments
- Failing to take advantage of professional help
- Only using traditional stock and bond asset casses
Not taking advantage of alternative investment strategies as a
way to reduce risk and enhance returns