During prolonged bear markets, investors naturally focus on how best to allocate portfolio assets to ensure they are not wholly exposed to the full brunt of declining equity prices. However, as the economy deteriorates and the financial sector in particular suffers declining revenue and job losses, investors should also consider whether they have increased exposure…
A concise review of issues pertinent to investment committee members, particularly (1) the law applicable to fiduciary responsibility; (2) its enforcement; (3) its evolving interpretation; and (4) second-order effects centering on changing views of accountability and risk, and coming from auditors and debt rating agencies.
This report examines state and federal law governing the fiduciary responsibilities of nonprofit entities, particularly investment committees, and IRS enforcement of transactions involving “excess benefit” and “disqualified persons.” Exhibits include sample conflict of interest and disclosure policies.
As assets under management grow, investment flexibility is limited and managers must make choices. How much money can investment managers take in before the ability to add value fades away to market returns minus fees?
Observations on investment implications from the 2003 Tax Act.
This extensive report examines the cost components of moving assets between managers, the relative merits of five methods for moving those assets, and selection criteria for choosing a transition manager.
A primer on UBIT including a clarification of rules governing its application and circumstances when this tax may be incurred.
This survey-based report examines five main areas of endowment management expense (investment management, investment supervision, custody, legal, and accounting/audit) and explores funding sources for each.
A primer on unitized accounting including information on creating and withdrawing units, appreciation/depreciation, and income allocation and distribution.
Planned giving programs may face a number of challenges. There may be a tension between fund raisers and those charged with investment oversight, and inadequate gift acceptance criteria, poor investment planning, and high administrative costs can further complicate the situation. This report details Cambridge Associates` recommendations to nonprofits for combating the challenges mentioned above and…