ClearView “Insights” Publications
Effective stewardship of an organization’s investments hinges on robust policies and governance structures, together with a culture that prioritizes the organization's perpetual mission. This edition of ClearView Insights explores the complexities and considerations of investing with a "perpetual" time horizon, helping to ensure a careful balancing of support for the organization’s current mission versus its long-term sustainability over a perpetual life.
Investment Policy for Foundations, Endowments and Not-For- Profits (4-part series)
A sound Investment Policy Statement (IPS) undergirds every successful investment program, and fiduciaries have an obligation to establish policies that are consistent with the perpetual nature of the institutional portfolios they serve. This special 4-part series sets out ClearView’s learnings and insights to help organizations craft IPS documents that help ensure the long-term success and vitality of the organizations for which they are written.
Part 1 - Best Practices for IPS Development
The first paper in this series discusses why an Investment Policy Statement is needed, addresses key considerations for an effective IPS, and highlights the major components of a comprehensive IPS document.
Part 2 - Establishing the Governance Framework
This paper provides an in depth look at the key governance factors that drive the construction of an IPS that is tailored to an organization’s individual needs, including: Defining the Investment Pool, the Regulatory Framework, Roles, Responsibilities, and Authorities, and Adviser Discretion.
Part 3 - Investment-Related Guidelines – Best Practices for Fiduciaries
The third paper in the series focuses on the key fiduciary duty of establishing appropriate Investment Guidelines. A thorough overview is provided on investment-related aspects of the IPS, including: Investment Horizon, Spending Policy, Investment Objectives, Asset Allocation, and Benchmarking.
The series’ final paper discusses key operating issues that are important for achieving fiduciary excellence. The paper covers: Fees and Expenses, Investment Selection / Allowable Investments, Risk Management, Rebalancing, Communication / Reporting, Adviser Review, and Investment Policy Review.
Selecting Investment Advisers for Foundations, Endowments and Nonprofits - An RFP Primer
For fiduciaries of foundations, endowments and nonprofits, the selection of appropriate investment advisers is among the most critical responsibilities. Advisers are most often selected through a Request for Proposal (RFP) process that demonstrates prudent fiduciary oversight, strengthens decision-making, and carefully documents the steps taken. This edition of ClearView Insights summarizes best practices to assist fiduciaries in creating a process that is efficient, fair and timely.
Investment Peer Analysis – A Definitive “Best Practice”
Many foundations, endowments and nonprofits have been unable to sustain the inflation-adjusted values of their portfolios over time. Among the tools available for benchmarking investment performance, peer analysis can be particularly valuable in helping institutions strengthen their decision-making and investment outcomes. Our research, however, indicates that only a fraction of foundations, endowments and nonprofits meaningfully utilize peer analysis in their portfolio implementation. This edition of ClearView Insights describes how peer analysis can supplement other essential tools for benchmarking investment results and making portfolio adjustments accordingly.
Investment Fees for Foundations, Endowments and Nonprofit Organizations
Investment fees are among the most widely discussed topics for fiduciaries of foundation, endowment and nonprofit endowments. Based on our extensive research in this area, this edition of ClearView Insights presents the seven factors that we believe most influence investment fees. It is critical that fiduciaries become knowledgeable in this area, exercising their best collective judgment to ensure that fees incurred are “appropriate and reasonable,” as required by the Uniform Prudent Management of Institutional Funds Act (UPMIFA).