Endowments & Foundations

Empowering those who protect others with better analysis, oversight and modeling.

Challenges

Foundations and endowments meet the world’s needs head-on through charitable giving. Whether to support healthy lifestyles, protect impoverished children, provide fresh water, improve education or to work locally in their communities, these non-profits are essential to fill the gaps that religion, government and private giving may leave behind. The CIOs and investing teams of foundations and endowments must balance risk with performance to ensure that funds are available to meet these needs. Many organizations lack the analytical tools to predict market trends or to verify information provided by asset managers. In addition, many organizations saw assets drop significantly in 2008 and many have not recovered.

Meeting the Challenge

eVestment offers analytic and portfolio management tools that support finding the optimal mix and allocation of funds for portfolios. Solutions offer a wealth of data from both traditional and alternative assets (55,000 vehicles total), the ability to research assets, back-test portfolios and to create pro forma portfolios.  With the right data and analysis, you can be confident that you are meeting your fiduciary responsibility of selecting the strongest investment options. Then you can understand how new assets impact the liquidity and profiles of your current portfolio. Analytics also assist with ongoing monitoring and oversight of managers and enable you to generate reports, graphs and charts that make it easier to communicate with trustees and directors. Finally, with macro-level information available about institutional asset flows, you can escape the lure of the herd to more accurately allocate funds where trends are heading, not where they have already gone.  

Solutions

Analytics

Analytics provides a robust engine powered by the eVestment global database where endowments and foundations can:

  • Screen potential managers on 2,300+ unique characteristics for traditional investments and 500+ characteristics for alternatives including qualitative information and all relevant index/universe benchmarks
  • Screen across 55,000 investment vehicles in all asset classes and geographies
  • Ensure screening includes newer managers and newer strategies
  • Create polished materials to support presentations and analysis processes for stakeholders
  • Compare managers against peers using numerous industry standard calculations
  • Construct, analyze and simulate active or pro forma portfolios using the Efficient Frontier and Monte Carlo Simulation
  • Track liquidity to view upcoming redemption possibilities and fees associated with those redemptions

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Asset Flows

Asset Flows offers a great view into global trends - across asset classes - with visibility into strategies, product types and style emphasis. With Asset Flows, you can see:

  • What types of products are in or out of vogue?
  • What kind of firm is investing in what kind of product and where?
  • Are the funds in my portfolio moving ahead of market shifts?

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Attribution

As an endowment or foundation, the truth behind a manager’s success and failure is often unknown. Breaking down the components of active return is key to better understanding a manager’s performance, evaluating investment decisions and determining the right questions to ask. eVestment Attribution is an equity holdings-based attribution system that helps you:

  • Understand the impact of security, sector and regional decisions as well as style, timing and activity components – quickly determining the manager’s strengths and weaknesses
  • Access and review attribution within the same Analytics platform you know and love – complete with advanced filtering, charting and publishing capabilities
  • Leverage 100% global institutional holdings data integrated directly into product profiles – no need to import data
  • Evaluate attribution against a new and unique peer group relative view called Peer Alpha – think peer group “benchmark” based on actual and aggregated holdings -- or compare against a specific active manger
  • Assess attribution analysis for hundreds of managers at once – produce reports in less than a minute 

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“In an ever-changing economic environment, stress-testing demonstrates how the endowment portfolio will react under certain market conditions and identifies potential weaknesses. While no guarantee against loss, stress-testing can often reveal a lack of diversification within the portfolio and offers the opportunity to make proactive changes to better protect against losses. Foundations should consider stress-testing the endowment portfolio at least once a year.”
Non-Profit Outlook for 2013

New Whitepaper:

Exploring the Challenges of Multi-Asset Class Analysis in Institutional Portfolios

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