We advise our clients on a specialized basis to support the success of the broader investment program.

In the course of advising clients, we often address matters that require specialized strategies or recommendations. Many of these areas fall outside the realm of advising on the program’s investment strategy, but are central to the smooth operation of the clients’s endowment. 

Some areas where we have advised include:

  • Evaluating or proposing a governance structure. Optimal decision-making requires clear delineation of accountability, roles, and responsibility.  Clients will often look to Cambridge Associates’ experience with establishing investment offices.
  • Assessing the role of debt within the client’s overall financial structure—including the types of expenses that should be debt-financed, an evaluation of debt capacity, and the development of a debt-financing strategy. 
  • Advising on the retention of a custodian bank. We provide general reports on custodians, but can also provide a customized custody study that recommends a custodian based on the specific needs of an institution.
  • Developing a strategy to handle concentrated stock in a portfolio. We can recommend a hedging strategy or approach to disposition that will help minimize the risk of a concentrated holding. We will also provide an independent evaluation of plans developed by investment banks or brokers.

Sovereign Wealth Fund Seeking Governance Advice

For a well-established Asian sovereign wealth fund, Cambridge Associates

was asked to undertake an Investment Planning Review to educate the group on how elements of the successful endowment management model could be incorporated into its own portfolio. As the discussion regarding policies and objectives progressed, it became clear that the decision-making structure of the fund was likely to impede, and perhaps even prevent, implementation of changes both staff and trustees agreed were important. As such, as an extension of the original review, Cambridge Associates was asked to assess options for a new governance framework. After a series of one-on-one meetings with trustees and a careful evaluation of potential political ramifications, the formation of an Investment Committee was recommended. The Board subsequently agreed and a new committee was appointed soon after. In addition, Cambridge Associates was responsible for documenting investment policies and guidelines, as well as determining their target asset allocation.