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Endowment Investment Services 

(for the frugal minded)

Why pay more than you have to? 

Nonprofit organizations face many challenges today. Fees should not be one of them.

My Story

I created Endowment Investment Services to make use of low-cost index funds and use technology to scale the model for more not-for-profits. The result is endowments save money on unnecessary investment fees and have more money reinvested for their organization's mission. It's that simple. 

Our comprehensive services provide you the solutions you need at a fraction of the cost. Our services include the following: 

Portfolio Management 

  • We assume Fiduciary responsibility for managing the endowment
  • We use Vanguard®, a trusted partner in investment management
  • We provide asset allocation and risk modeling
  • Daily oversight, monitoring, and rebalancing
  • Dedicated support, an extension of your team, the buck stops here

Additional Services

  • Review meetings quarterly or as needed
  • Investment policy statement construction
  • Dedicated Portal to view account balances and Virtual vault to store plan documents

All this for a .30% Management Fee? Yes! Fees are a hurdle to investment performance. We don't want to create unnecessary hurdles. By using technology and Vanguard® funds we significantly lower our fee and can provide you a world-class solution at a fraction of our competitor's cost.  

Frequently Asked Questions?

Why use you? Why not go direct to Vanguard®? Vanguard® has a $5MM minimum for their advisor managed endowments. They also have a minimum fee of $30,000. We think that is a lot and unnecessary. (Spoiler alert: They only want to work with very large plans.) 

How good can the performance be for such a low cost? About as good as the index! We keep the cost down by using index funds. We love passing our savings onto you!

Where is the money held? Investments are held at Fidelity. You will receive online access, monthly statements of activity, and quarterly performance reports. 

What is the minimum? No minimum size of endowment required. We work with endowments big and small.  

Why use index funds? Active and passive index mutual funds both involve the risk of losing money. However, in any given year, active managers may underperform the index because of bad stock picking. This can lead to a greater standard deviation (a measure of risk) than the broad market index. All this means is active managers may be taking on more risk than the index, and is that suitable for your endowment? Not in my opinion. Own the index, and don't take on more risk than needed. (Index funds help keep the cost down too, did I mention that?)

Read more on why endowments should include indexation:

NY Times - "In Investing, Passive Beats Active"

The Balance - "Comparing Actively Managed Funds vs. Passive Investing"

CNBC - "Warren Buffett highlighted one of the best ways to grow rich"

Sample Portfolios:

Asset Allocation

Source: Vanguard®

What tools do you use to meet your Fiduciary responsibility? Great question! It all starts with an Investor Policy Statement (IPS). The IPS outlines our investment process, the investments we can/cannot use, the expected return, and risk. We also use third-party software like FI360 to helps us screen out investments that are unsuitable. We do this on a continuous basis, year-in and year-out to help ensure we are meeting our fiduciary responsibility. 

We also offer a complimentary Endowment Review to help you answer the following:  

  1. Do you know the advisor fee and sub-advisor fees for the endowment? 
  2. Do you know the risk or standard deviation of the investments? 
  3. Does the risk and return of the Endowment match the Investor Policy Statement? 
  4. Is the return due to manager skill or luck? Are you better off in an index fund? 
  5. Have you negotiated a lower fee or allocated more to lower cost index funds? 

Take the next step, schedule a complimentary consultation.