4 Questions Foundations Should Ask When Evaluating an Investment Advisor

In the years following the financial crisis, endowment and foundation returns have benefited from strong equity market returns. However, as we now enter an environment where high returns are increasingly challenging to achieve on a risk parity basis, many foundations and endowments are taking the time to reevaluate the drivers of past performance and analyze the most intelligent means to maintain returns. It is incumbent upon the governing bodies of these organizations to implement best practices in effective management of investment portfolios, and to abide by their fiduciary obligation to prudently manage investment assets. As they look to evaluate their investments and/or reevaluate their investment advisors, we believe it is important for board and trustee members to focus on the following four questions, which we hope will lead decision makers to a deeper and more useful understanding of their own objectives and needs, and ensure that they are partnering with the right investment advisory firm for their organization.

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