What Does the Endowment Model Look Like for my Institution
The Endowment Model (most associated with Yale) of asset allocation and investment selection is well known. It involves the heavily-weighted use of alternative asset classes, direct and illiquid investments, and limited use of core asset classes, which are usually indexed. At times this approach like any investment approach can produce varied results. But what if this approach is not entirely the best fit for your institution.
The How and When of Performing Searches
When an institution decides to move forward with an OCIO search, and after they have done the initial prep work, a plan for proceeding needs to be developed. There are different ways to proceed with an OCIO search to make the oversight process more effective for a given institution.
Importance of Starting with the End in Mind
An institution working through its board, investment and finance committees and staff has a significant challenge in meeting their fiduciary role and responsibilities in overseeing the selection and monitoring of their OCIO provider. Starting with the end in mind serves to make an effective OCIO oversight process.
When “Conflict-Free” Isn’t Free From Conflicts
Conflicts of interest have long been a detriment to the integrity of the financial services industry. The DOL’s Fiduciary Rule and the SEC’s Regulation Best Interest are aimed at either eliminating conflicts of interest or requiring their full disclosure, with the ultimate goal of protecting unaware individuals.
Asking the Right Questions to Ensure More Effective OCIO Services
Do you have an OCIO provider or are considering implementing this model for your institution? Answer this questionnaire to help you determine whether you have effectively designed and implemented your oversight functions in ways that can vastly improve the benefits provided by your outsourcing partner and limit your risk exposure.