SacStateDonorPresentation final.pptx [Read-Only] Craven Senior Portfolio Manager Sara works in close partnership with Sand Hill’s institutional and non-profit clients in all areas

GLOBAL. PERSPECTIVE. DELIVERED.

Sand Hill Global Advisors. All rights reserved.

Foundation Review

Presentation to:

University Endowment Donors

October 2nd, 2013


IntroductionsBrian Dombkowski, CFA President & Chief Investment OfficerBrian provides overall strategic direction and leadership to the investment management, wealth management,finance and operations groups of Sand Hill Global Advisors. Before joining the firm, Brian served as the Co-ChiefInvestment Officer of Stafford Capital Management. Prior to his time with Stafford, he was a Co-Chief InvestmentOfficer with RCM Capital Management. Brian currently serves on the Investment Committee of the WoodsideSchool Foundation and has previously served on the Board of Directors of Children’s Health Council, as Chair oftheir Investment Committee; as Chairman of the Board of Directors of the American Lung Association; and onthe Board of Directors of a privately held mutual fund company. Brian earned his BS and MS in Finance from theUniversity of Wisconsin and is a member of the CFA Institute and the CFA Society of San Francisco.

Sara Craven Senior Portfolio ManagerSara works in close partnership with Sand Hill’s institutional and non-profit clients in all areas of theirendowment needs. Sara spent 17 years studying the fixed income markets and actively contributes to theinvestment management of Sand Hill’s fixed income asset allocation and process. Prior to joining Sand HillGlobal Advisors, she was a Portfolio Manager and Head Trader at Santa Barbara Bank & Trust and aninternational and emerging market bond associate for T. Rowe Price & Co. in Baltimore, Maryland. Sara hasbeen an active board member for the Northern Nevada/Northern California Chapter of the Alzheimer’sAssociation, the leading voluntary health organization in Alzheimer care. Sara earned her BA in Economics fromthe University of Delaware and her MA in Economics from University of California, Santa Barbara.

Meghan DeGroot AnalystMeghan contributes to the design and implementation of asset allocation strategies. Her specific area of focus andresearch within the financial markets is fixed income. She works closely with the Wealth Management group tomanage client relationships and portfolios and offer additional depth of resources to each client relationship.Previously, Meghan worked at SharesPost where she facilitated private party transactions of pre-IPO stocks. Priorto that time, she served as an Associate in the New York office of Sanford Bernstein where she focused onstrategic asset allocations and the coordination of tax and estate planning with outside professionals. Meghanstarted her career at Fisher Investments. Meghan graduated summa cum laude with highest honors from theUniversity of Georgia with a degree in International Business and a minor in Spanish. She is currently a CFALevel II candidate.


Mission Statement

Introduction to Sand Hill: Who We Are

• In the investment management business since 1982.

• Client assets total over $1.25 billion.

• Fiduciary approach focused on independent investment advice and financial planning.

• Results-oriented philosophy executed through an insightful, team-based approach.

• Specialized focus on endowments and foundations.

• Employee-owned.

We are dedicated to providing exceptional wealth advisory services by forming partnerships with our clients built on trust, understanding, and thoughtful counsel.


Independence

An Objective Partner

• Sand Hill embraces an open‐architecture, best‐in‐class approach to investing, and emphasizes overall cost‐effectiveness.

• Sand Hill’s ultimate objective is to provide clients with superior results over time and net of fees.

• Sand Hill does not syndicate any product, nor do we sell or receive compensation for the placement of any product.

• Sand Hill embraces the CFA and CFP Code of Ethics and Standards of Professional Conduct.

We are committed to the fiduciary standard, independence and objectivity in our research and in the implementation of client portfolios.

We all sit on the same side of the table


Strategic Asset Allocation

Investment Philosophy

Choosing the right asset classes has a powerful influence on a portfolio’s overall performance and is a key element in managing risk.


Risk and Reward

The Endowment Allocation

The University Foundation portfolio is built to support your mission into perpetuity.


Risk and Reward

Your Endowment Allocation

The University Foundation portfolio is built to support your mission into perpetuity.


Rebalancing

Investment Strategy

A long-term, contrarian approach that is designed to take advantage of market volatility.


Investment Process

Risk Controls

• Active Management• Investment Dashboard• Extensive Due Diligence• Alternative Investments

Manager Selection

Manager Due Diligence

• Best of Breed Managers• Open Architecture• Core-Satellite Approach• Unique Portfolio Impact

• Bond Portfolio• Core Stock Portfolio• Stock Option Analysis• Concentrated Positions

SecuritySelection

Direct Investment

Idea Generation• Focused Team of Portfolio Managers• Macro Economic Analysis• Global Market Outlook• Strategic and Tactical Asset Allocation

University Foundation’sInvestment Policy

Statement

University Foundation’s Trustee Governance

Portfolio Construction• Customized for your long-term goals• Portfolio optimization and rebalancing• Implementation and monitoring


Economic and Market Outlook


For the 12-month period ending June 2013, your endowment returned 11.1%.

Economic and Market Outlook


The Magic of Education

What we do isn’t magic, what you do is:

• The impact donors make made us think about the magic a donor creates when they, through gifting, create an education leap forward for a student.

• Your support of Sacramento State provides life-changing opportunities for the students, preparing them to be leaders in their professions and communities.

• Scholarships are among the most rewarding ways to give to Sacramento State because of the nearly immediate impact they can make on students’ lives.

• Establishing, contributing to or endowing a scholarship helps ensure that Sacramento State remains affordable and accessible. It also provides opportunities to recognize and motivate the best and brightest students.

Mission-Driven“An investment in knowledge pays the best interest.” – Benjamin Franklin


Highly Relevant Magic

I can read your mind.

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Pick One Card and Concentrate

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Concentrate!

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Voilà!

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Sand Hill Global Advisors. All rights reserved..

Lower Costs Improve Mission Sustainability

Sand Hill Global Advisors. All rights reserved..

Lower Costs Improve Mission Sustainability


Mission Sustainability

Trustee Prudence

• A complete market cycle is typically defined as a 5-year period.

• Recent measurement periods (5-year rolling periods) have averaged between 3%-4% annualized portfolio returns.

• These portfolio returns incorporate the Great Recession and the 2008 Market Liquidity Crisis.

• The projected return environment is more normalized than the recent experience would suggest.

• The Foundation’s draw rate has been very prudent, which has protected the corpus of the endowment portfolio during this lower return period.

• Your contributions have the potential to lessen the reliance on the capital markets.


Redefine the Possible

Working with your Trustees

Your Trustees are focused on optimizing the Foundation’s processes and outcomes.

Pace of Economic &

Market Change

Execution of Strategy

FiduciaryResponsibility

How do you construct a portfolio against the backdrop of today’s uncertain economic times?• A global macro framework• Strength of a dedicated team-based approach• The role of alternatives in a portfolioHow do you implement a conflict-

free relationship that serves mybest interest? • The failure of the brokerage model• The commitment to objectivity• The leverage of size and scale

How do you optimize execution?• The discipline to rebalance• The sustainability of your assets• Excessive fees erode returns


THE MAGIC OF EDUCATION


Your Fiduciary Partner

Sand Hill is honored to be your fiduciary partner in the management of your endowment portfolio.

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Documents

SacStateDonorPresentation final.pptx [Read-Only] Craven Senior Portfolio Manager Sara works in close partnership with Sand Hill’s institutional and non-profit clients in all areas