A Resource for Foundations & Endowments to Improve Investment Outcomes
Share current LOB: CommercialCorporateInstitutional
Intro: Investment committees are board designated subcommittees that are responsible for ensuring that there is a solid infrastructure in place to oversee an organization’s investable assets. One of the most important duties of an investment committee is to draft an investment policy that considers the organization’s mission, time horizon, spending needs, and risk tolerance. In addition to monitoring performance and engaging an investment advisor or consultant, the committee members must also fulfill their fiduciary responsibility by upholding legal standards and duties that comply with current regulations governing tax-exempt entities.
Our SunTrust Foundation & Endowments Specialty Practice offers an array of resources and solutions for nonprofit organizations. Take a look at our Investment Committee Toolkit, designed to assist investment committees improve their investment outcomes.
I. Finding or replacing an asset management provider
This sample Request for Proposal, in formal letter format, gives the recipient a bulleted list of items to include in the proposal. This format may be particularly valued by volunteer board members who are “stretched for time” as respondents are limited to 25 pages or less.
Selecting an investment advisor is an important fiduciary responsibility for board members. Oftentimes, the number of choices and complexity of a Request for Proposal(RFP) process can become overwhelming. However, with some advance planning and a roadmap for success, your board can approach your search for the right investment advisor with confidence.
This guide helps committee members run an investment committee meeting in an efficient and productive manner.
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
There’s no right or wrong approach when it comes to deciding on a discretionary or non-discretionary investment model for your organization. Instead, a multitude of factors need to be carefully weighed to determine which model is right for your organization.
Bill Longan, Senior Investment Advisor, SunTrust Foundations & Endowments Specialty Practice and Elizabeth Horsley, Attorney with Williams Mullen discuss in greater detail specific sections of Uniform Prudent Management of Institutional Funds Act (UPMIFA), and the important guidance it offers to investment stewards.
The decision to use active management, passive management or a blend of both is important. It is an evolving discussion that can be adjusted as organizational needs, the economy and financial markets change. But, it is important to remember that it is only one step in the investment process.