Endowment Management Services Tailored To The Needs Of Clients
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Posted On :
Nov-24-2010
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Article Word Count :
411
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The Endowment Management needs of an academic institution differ from those of say a cultural or religious organization.Like individuals and families, institutional clients, too, need a diversified and disciplined Endowment Management approach that accounts for both returns and risks.
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The Endowment Management needs of an academic institution differ from those of say a cultural or religious organization.Like individuals and families, institutional clients, too, need a diversified and disciplined Endowment Management approach that accounts for both returns and risks.
However, the caretakers of an institutional endowment face many a unique issue that they have to deal with during their tenures.Despite their similarities, the issues may differ in the degree of relevance and impact that they bring to bear on investment decisions that institutions make. A religious institution for example may eschew investments in companies that market tobacco products, contraceptives or weaponry. Institutional Endowment Management demands a holistic approach.
One of the most important services that a wealth management firm can provide to caretakers of institutional endowments is reduced fiduciary risk, which is accomplished by the creation of a detailed Investment Policy Statement consistent with the needs of the particular institution. Caretakers benefit from the firm's ongoing Investment Policy Statement reviews and performance reporting.
The firm can work with the caretakers to implement either a portion of the allocated assets or the entire endowment.As is the case with trustees seeking a good trust manager, caretakers of institutional endowments, too, must exercise due diligence.Custodians and internal endowment managers must pay close attention to many factors when researching and shortlisting firms for the management of their endowment.One of the most important factors is whether the wealth management firm has a client-centric approach, i.e., the firm takes every step possible to understand the institution and its unique needs, and does not offer cookie-cutter solutions.
Other equally important factors include whether the firm can be expected to provide rational, objective, independent and unbiased advice charges a fee for its services instead of commissions (if it works on a commission basis, the firm may not have your best interests at heart) charges fees based on the size of the portfolio and not on portfolio changes educates clients about investments instead of behaving like a salesman of investment products has a disciplined, not a knee-jerk, investment philosophy presents a broad spectrum of investment portfolios—from income generation to very aggressive capital growth can help build and maintain an appropriate mix of investment vehicles and has the experience, track record, and the proof to back their talk.
Also vital is the background of the firm's core team, and the opinion of clients (past and present), and respected media properties.
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Article Source :
http://www.articleseen.com/Article_Endowment Management Services Tailored To The Needs Of Clients_42849.aspx
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Author Resource :
For more insights and further information about Endowment Management ,Investment Advisors and Trust Management visit our site http://www.ecabot.com
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Keywords :
Investment Advisors, Trust Management , Endowment Management,
Category :
Finance
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Finance
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