The student population at regional universities is predicted to fall more than
Is Your Asset Allocation Supporting Your University's Financial Goals?
Learn how an enterprise risk approach can help
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between 2025-2029*
15%
said expenses at our institution are growing
faster than the cash or revenues to support them**
67%
In a recent survey of college and university finance professionals,
said the trend of new credentials becoming
available will significantly impact the competitive landscape for student enrollment**
94%
when creating your investment strategy
Factors like this
Our OCIO solution includes a proprietary
Financial Enterprise Risk Analysis (FERA)
to demonstrate how changes in:
spending
inflation
capital expenditures
debt policies
liquidity needs
asset allocation
market scenarios
projected operational budgets
All have an impact on how the various pools of assets should be managed
How much should you allocate to alternative investments?
How much liquidity do you really need?
How much risk can you afford to take?
?
See how we bring invaluable financial insight and decision support.
THE FIVE STEPS
Take a quick walk through
GET STARTED
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*Source: Demographics and the Demand for Higher Education, Nathan D. Grawe, 2018. **Source: SEI Nonprofit Management Research Panel “2019 Nonprofit Investment Survey” n=18 (August 2019). Information provided by SEI Investments Management Corporation, a wholly owned subsidiary of SEI Investments Company. Investing involves risk including possible loss of principal. There is no guarantee that risk can be managed successfully or that objectives discussed will be met. Asset allocation may not protect against market risk.
can have a material impact on your university’s financial health, and
need to be considered
• Organization's goals • Fundraising expectations • Upcoming capital needs • Scholarship and discounting plans • Future enrollment expectations
1. Operational and Strategic Initiative Review
We gain an understanding around your:
Step 2
Following the operational and strategic review, we work with your leadership team to create baseline and downside operational projections to incorporate into the strategic asset allocation discussion.
2. Baseline and Downside Operational Projections
3. Derive Investment Portfolio Needs
Next, an asset allocation will be conducted to determine an optimal portfolio from a return, risk and liquidity perspective
4. Analyze Strategic Asset Allocation Choices
Part of the asset allocation study will include a stochastic analysis with probabilities of achieving the organization’s goals while also considering the impact of downside projections
5. Ongoing Risk Management
Finally, we rely on a $4 million annual budget* to deliver a risk management system that takes a forward-looking, holdings based analysis rather than backward-looking, returns based approach
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1
-14.2%
Current
Poor Scenario Outcomes
Liquid
Semi-liquid
Illiquid
12%
10%
78%
Portfolio Liquidity
Expected Risk/Return Metrics (10 Year)
Expected Return
Expected Risk
7.2%
14.9%
Lower Risk
5.5%
7.6%
Higher Return
7.0%
12.7%
5%
90%
13%
17%
70%
-6.0%
-11.7%
Our analysis incudes looking at a range of potential portfolios to help meet your needs
We perform modeling to compare the risk and return potential of each portfolio
Analyze the liquidity profile of each portfolio option relative to your needs
We forecast how each portfolio would behave under poor investment conditions
We compare your key financial ratios to relevant industry medians
We work to understand your key issues and challenges and factor them in to our analysis
Want to know more?
Order your custom analysis
Learn more about our time-tested OCIO solution for universities
*As of 6/30/19. Information provided by SEI Investments Management Corporation, a wholly owned subsidiary of SEI Investments Company. Investing involves risk including possible loss of principal. There is no guarantee that risk can be managed successfully or that objectives discussed will be met. Asset allocation may not protect against market risk.
Learn more about our time-tested OCIO solution for Universities
Organization's goals Fundraising expectations Upcoming capital needs Scholarship and discounting plans Future enrollment expectations
Is Your Asset Allocation Supporting Your Financial Goals?
We are one of the only OCIO’s that goes to this level to customize your portfolio.
This allows us to create a custom investment portfolio with return expectations, risk and liquidity profile designed to achieve your goals through multiple market regimes
We create your custom asset allocations based on an enterprise risk approach
Learn about our 5 step process
Other asset pools
Qualitative issues
Debt
Operating assumptions
Strategic goals
This approach involves a thorough financial review that looks at variables such as:
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Finally, we rely on a $4 million annual budget to deliver a risk management system that takes a forward-looking, holdings based analysis rather than backward-looking, returns based approach
Lower RIsk
Our analysis incudes looking at a range of potential portfolios to meet your needs
• Organization goals • Fundraising expectations • Upcoming capital needs • Scholarship and discounting plans • Future enrollment expectations
Operational and Strategic Initiative Review
2
Baseline and Downside Operational Projections
3
Derive Investment Portfolio Needs
4
Analyze Strategic Asset Allocation Choices
5
Ongoing Risk Management
Our process to enterprise risk management
