As fiduciary advisors for trusts, nonprofits, and qualified plans for nearly 50 years, The Fiduciary Group is uniquely suited to serve as the investment manager for private foundations, charities, endowments and other nonprofit organizations. We have a long history and expertise in stewarding assets and prudently investing in the best interests of our clients and their beneficiaries. Whatever are your nonprofit’s goals, our mission is to protect and grow the assets that make them possible.
We work with the nonprofit's directors, trustees, and investment committee to develop an Investment Policy Statement (IPS) that meets the needs of the organization. We take into consideration both the short-term operational needs and long-term financial goals of the nonprofit, as well as liquidity needs, risk tolerance, and other unique characteristics of the nonprofit and those it serves. The IPS serves as the framework under which we manage the organization's assets.
Asset allocation is the breakdown between equity, fixed income, cash and alternative investments as outlined in the IPS. We gain exposure to asset classes through a combination of individual securities, mutual funds, and ETFs. We believe exposure to both active and passive strategies is prudent. We construct globally diversified investment portfolios which strive to balance expected returns, risk, diversification, and overall portfolio expenses.
The investment committee, directors, and/or trustees of nonprofits delegate to our firm the responsibility for investing the nonprofit's assets in accordance with the IPS. We provide ongoing due diligence and performance reporting to document that we are fulfilling the fiduciary role we have assumed. We meet regularly with the organization's investment committee to ensure that the investment policy, asset allocation and strategies are achieving the targeted risk-adjusted returns while appropriately managing risk and liquidity requirements.
We use our financial planning capabilities to provide ongoing cashflow planning for nonprofits. This is a useful tool which allows the investment committee, directors, and/or trustees to see forward-looking illustrations of asset accumulation and depletion scenarios based on various forward rates of return and cash withdrawal expectations.