Our role as an investment consultant largely depends on a client’s portfolio complexity and the availability of talented committee members and staff.
Some clients have a full-time staff or an investment committee that is available to spend significant time on endowment oversight. In these cases, we serve as a sounding board to the staff and committee, providing insights and advice to help them properly oversee the endowment’s portfolio. We tailor our level of involvement based on client input, allowing our clients to benefit from our extensive resources in the way that best works for them.
Other clients have a strong CIO in place, but limited staff available to help the CIO implement and execute portfolio decisions. For these types of clients, we work closely with the CIO to serve as an extension of the investment office staff or as a fully-integrated partner in endowment oversight. In these cases, we provide a more proactive “advisory” consulting approach that includes day-to-day oversight of the entire portfolio, including direct alternative asset programs, if needed. We also provide administrative support for those clients using our advisory consulting approach, including audit support for foundations and endowments. Clients can utilize our advisory approach for their entire portfolios or for their dedicated alternative asset programs only.
For a small New England secondary boys' school seeking an advisor to professionalize its
investment approach, Cambridge Associates has developed asset allocation and investment policy guidelines, selected investment managers, and created quarterly performance reports. Since becoming a client in 2007, the portfolio and investment approach has been formalized to lay the groundwork in advance of a major capital campaign to grow this under $100 million endowment.
For a $1.7 billion independent foundation, Cambridge Associates has been providing
traditional consulting services since its start-up in 1996. The foundation approached Cambridge Associates with approximately $1.1 billion in cash and, with the help of Cambridge Associates, has grown its assets to $1.7 billion. The process began by creating investment objectives, an investment policy statement, spending policy, and investment guidelines. The foundation now has a comprehensive investment portfolio and consistently beats benchmarks and top-quartile performing U.S. endowments.