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Other Financial Polices: Outside Investment Managers. Allison Peck Lankford, J.D. VP/General Counsel, Blue Grass Community Foundation [email protected] / 859.225.3343. Let’s Put This In Context…. Let’s Put This In Context…. NO MINIMUM Outside Investment Manager Policy. Advantages. - PowerPoint PPT Presentation
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Other Financial Polices: Outside Investment Managers
Allison Peck Lankford, J.D.VP/General Counsel, Blue Grass Community Foundation
[email protected] / 859.225.3343
Let’s Put This In Context…
Let’s Put This In Context…
NO MINIMUM Outside Investment Manager Policy
Advantages Relationship builder with professional advisors
Overall awareness and appreciation of services
Improved donor services
Diversification of investment philosophies consistent with IPS
Proactive solution rather than reactive
Challenges
Internal Administration
Cash Flow
Internal Controls
Investment Committee
Development vs. Finance
Necessary Policies & Procedures
Investment Policy Statement
Qualified External Investment Advisor Policy
Qualified External Investment Advisor Checklist
Investment Committee Approval of Advisors
Advisor Responsibilities
Adhering to IPS
Adhering to investment goal, strategy, and asset allocation model for which Advisor was approved by Committee
Monthly accounting statements
Immediately reporting material matters affected relationship with Foundation (regulatory action; legal action; changes in personnel; ownership of firm; fees, etc.)
Engagement Process
Criteria considered when deciding to engage an advisor recommended by donor(s):
Established Firm
Minimum Professional Qualifications
Private Benefit to the Donor
Asset Allocation and Portfolio Management
Documentation Form ADV Part I Most recent audited financial statements of advisor’s firm Proof of Insurance as it relates to managmeent of Foundation’s assets
Investment StrategyThe donor, in consultation with the Investment Advisor, will have the choice of assetallocation options listed below. Once an allocation is chosen, the funds can only be movedto another allocation option semi-annually on January 1 and/or July 1. CONSERVATIVE (equity range 0-30%)• Asset Allocation: Risk Adverse Portfolio• Asset Allocation: Conservative Portfolio
MODERATE (equity range 40-70%)• Asset Allocation: Moderate Portfolio• Asset Allocation: ESG (Environmental, Social, Governance) Moderate Portfolio
LONG TERM (equity range 60-100%)• Asset Allocation: Long Term Portfolio• Asset Allocation: Equity Portfolio
Outside Advisor Analysis
THIS IS JUST ONE PART OF THE STORY - IT DOESN’T ACCOUT FOR GOODWILL AND IMPROVED IMAGE WITH DONORS AND ADVISORS.
Questions?Brian Dineen, Vice President of Finance
Allison Lankford, Sr. VP & General [email protected]
859.225.3343
499 East High Street ● Suite 112 ● Lexington, KY 40507 ● 859.225.3343 ● www.bgcf.org
