Is ESG here to stay? Will active investing have its turn in the sun? Can international markets finally outperform domestic markets? Does cryptocurrency belong in an endowment portfolio?
These are common investment-related questions that nonprofit leaders and people overseeing endowments might have.
In this episode, Bob DiMeo and Devon Francis answer the above questions and more. They also share Fiducient Advisors’ outlook for 2023 and beyond.
You will learn:
What is driving the growth of ESG investing despite political backlash and greenwashing
Valuable insights into active vs. passive investing and domestic vs. international markets
Why cryptocurrency might not become an integral part of an endowment portfolio
As part of your ESG goals, you might be screening certain investments before adding them to your endowment’s portfolio.
If you want to amplify your impact, adding a “sustainability fund” might help.
In this episode, Bob DiMeo and Devon Francis speak with Dr. Troy Hammond, a scientist, business leader, and entrepreneur who served as North Central College’s president for nearly 10 years until July 2022. Troy shares actionable strategies for effective endowment management and mission-aligned investing.
You will learn:
Three reasons why renewable energy projects fail (despite having a positive return potential)
How a “sustainability fund” can provide long-term steady income yield
Ways to improve endowment governance and align all stakeholders
Troy’s best advice to set nonprofit leaders up for future success
A scientist, business leader and entrepreneur, Dr. Troy D. Hammond brought visionary leadership to North Central College over his nearly 10 years as president. Hammond launched his presidency with the bold Brilliant Future Campaign, a $150 million fundraising initiative—the most ambitious capital campaign in the College’s history—which brought sweeping physical changes to campus. He also created the Cardinal Sustainability Fund, which led to significant LED lighting and solar projects across campus. During Hammond’s tenure, several Cardinal athletic programs soared to new heights, including the College’s first-ever football national championship in 2019 and multiple national championships in other sports.
Prior to joining North Central, Hammond was at McKinsey & Company, a global leader in management consulting, where he became an associate principal. He then joined Plextronics, Inc., helping raise substantial venture and strategic capital and growing the technology company into a global leader in printed electronics. During this time, he also served as an adjunct professor of business at Milligan College.
2022 was a challenging year for investors, primarily due to high volatility, severe market drawdowns, and increased Fed intervention.
But what should investors consider moving forward in 2023 and beyond?
Find out in this episode, as Bob DiMeo and Devon Francis speak with Brad Long, CFA®, partner and deputy chief investment officer at Fiducient Advisors. They provide recent market updates and future outlook for US and international markets.
You will learn:
Three key themes investors should keep in mind when planning for 2023
Navigating the bumpy path to inflation moderation and a potential bear market bottom
Fiducient’s capital market assumptions (stocks, bonds, and alternative assets)
Insights into return expectations and portfolio implications
Brad Long joined Fiducient Advisors in 2012. He is chair of the firm’s Investment Committee and a member of the firm’s Discretionary Committee, Research Forum, Capital Markets Team and Mission-Aligned Investing Committee. Prior to joining the firm, Brad worked in various research capacities at Citigroup and Wells Fargo in New York. He received a BA in Finance and Minor in Economics from The University of Colorado and is a CFA® charterholder and member of the CFA Society of Chicago and CFA Institute. Additionally, he is active with Greenhouse Scholars, a nonprofit providing financial and personal support to under-resourced college students. In his free time, Brad loves cooking and spending time with his wife and young sons.
Being part of a diverse organization does not guarantee everyone feels valued and welcome. It’s crucial to simultaneously and intentionally focus on equity, inclusion and belonging.
Moreover, DEIB is not only the right thing to do, but research shows it can also produce better outcomes.
In this episode, Bob DiMeo and Devon Francis speak with Karen Paulson, partner and senior consultant at Fiducient Advisors, who also chairs the firm’s Diversity, Equity & Inclusion Steering Committee. Karen provides meaningful insights and inspiration to all stewards looking to advance their DEIB objectives.
You will learn:
Macro trends in the DEIB space, especially in the investment management industry
Various DEIB initiatives at Fiducient — and the three primary pillars that support these initiatives
How organizational leaders can develop diverse talent and an inclusive culture
Best practices to create DEIB awareness and align boards and committees
As a Partner and Senior Consultant, Karen services institutional clients, including 401(k) and tax-exempt retirement plans and nonprofit endowments and foundations, by providing advice and counsel on all areas of fund oversight including policy, asset allocation, manager research, portfolio structure, portfolio rebalancing, performance monitoring and overall investment policy. Karen is chair of the firm’s Diversity, Equity & Inclusion Steering Committee and is a member of the firm’s Defined Contribution Strategic Oversight Committee, Mission-Aligned Investing Committee and Employee Engagement Team. Karen co-founded Fiduciary Investment Advisors, LLC in 2006, which combined with Fiducient Advisors in 2020.
The traditional 60/40 stock/bond portfolio is on pace for its worst performance in 80 years and Treasury bonds might register their worst performance in 200 years! Investor anxiety seems to be rising in lock-step with interest rates.
All this contributes to a high level of uncertainty for those who oversee endowments and foundations.
In this episode, Bob DiMeo and Devon Francis help investment committees (or any nonprofit leader overseeing investments) combat market uncertainty through four key action items.
You will learn the following:
Why good stewards need to separate today’s news from the noise
Important considerations regarding expected investment returns moving forward
Insights into alternative asset classes, especially in light of higher interest rates
An important step in ESG investing that many organizations are overlooking
High-performing organizations are characterized by strong leadership, a clear goal, and strategic investments.
In this episode, Bob DiMeo and Devon Francis speak with Jeffery Perry, founder & CEO of Lead Mandates LLC. They discuss the major drivers of success for high-performing organizations (especially nonprofits).
You will learn the following:
The importance of having a clear sense of purpose for your organization
Evolution in asset allocation strategies and endowment management
The key to authentic ESG investing (and the impact of the “peanut butter approach”)
Personal leadership insights for nonprofit leaders
Jeff is the Founder & CEO of Lead Mandates LLC, an advisory firm that helps organizations improve business and leadership performance. He is a global strategic business advisor with relevant experience that spans 20 years combined as partner at Ernst & Young LLP (EY) and A.T. Kearney. He is a highly skilled and passionate leader in mergers and acquisitions (M&A), integrations, divestitures, and business transformations, linking strategy to purpose-led leadership and execution.
Jeff is a member of corporate and non-profit boards including: Board Director, Fortune Brands Home & Security, Inc. (NYSE: FBHS); Independent Director (Trustee), Equitable Funds; Board of Trustees Chair, Babson College; Board Chair, Chicago Children’s Museum; Former Board Chair, INROADS Inc.; Board Director, National Association of Corporate Directors (NACD) Chicago Chapter; Board Director, Harvard Business School African-American Alumni Association; Association of Governing Boards of Universities and Colleges (AGB) Council of Board Chairs. In addition, he is included in Savoy Magazine 2021 Most Influential Black Corporate Directors and Financial Times Agenda Diversity 100.
Jeff received his B.S. in Marketing/Quantitative Methods, with high distinction, from Babson College and M.B.A. from Harvard Business School.
With continued market volatility, a rising US dollar, and upcoming midterm elections, it’s time for our third Quarterly Quick Take of 2022.
In this episode, Bob DiMeo and Devon Francis speak with Brad Long, CFA®, partner and deputy chief investment officer at Fiducient Advisors. They discuss timely market and economic updates, including important portfolio implications for investors.
You will learn:
The deception of bear market rallies (and why you should beware)
The impact of a strengthening US dollar, and what it might mean for your endowment
Little-known benefits of high interest rates
How investors can avoid “recency bias” while planning for the future
And more!
Tune in for timely market updates as we enter the final quarter of 2022!
Some investment committees are reluctant to own alternative investments because they don’t understand the space well.
Or perhaps they are intimidated due to the complexity and cost.
In this episode, Bob DiMeo and Devon Francis speak with Anthony Novara, CFA®, research director of Fiducient Advisors’ marketable alternatives group. They demystify hedge fund investing and its role in effective portfolio management, especially amidst high market volatility.
You will learn:
Five primary strategies used in hedge funds investing
Major pros and cons of hedge funds for endowments and foundations
Fund of funds — how they work, fee structures, and investment benefits
Why the notion “hedge funds are inherently riskier” may not always true
And more!
Tune in to learn how to navigate hedge funds and other forms of alternative investments!
Did you know economic stability can lead to instability? Is it possible to spend less today in order to spend more later?
Investors encounter such paradoxes regularly, which can be deeply damaging to nonprofits and endowments.
In this episode, Bob DiMeo and Devon Francis discuss five major investing paradoxes you must keep in mind, especially during times of market volatility and economic uncertainty.
You will learn:
How to overcome the “complacency challenge” and achieve long-term stability
Why major changes in your spending policies might be required
Better strategies for dealing with volatile markets than “timing the market”
The dangers of extrapolation in the endowment investing world
And more!
Tune in to learn how to tackle market volatility with confidence by understanding five investing paradoxes!
When raising funds for a new project, are you factoring in operating costs? What type of board and investment committee members do you recruit? How has spending and investing changed in 2022?
These are just some of the questions nonprofit leaders are asking today.
In this episode, Bob DiMeo and Devon Francis speak with Dr. Jim Reynolds, president at Millikin University. Having worked in higher education for over three decades, Dr. Reynolds shares his experience in advancing an organization’s mission by adapting endowment management, fundraising, and spending policies to the current environment.
You will learn:
Why it’s important to raise for maintenance during capital campaigns
The role of higher-ed institutions in bridging the income gap for its students
How to build well-balanced committees with diverse members
Steps taken by Millikin’s investment committee to improve its ESG efforts
And more!
Tune in to unpack key considerations for nonprofit leaders today, in higher education and beyond!
Dr. James Reynolds is the president of Millikin University, a Decatur-based private institution with a diverse population of about 2000 students. Millikin University consistently receives recognition as one of the nation’s best colleges and is on Princeton review’s Best in the Midwest list, Forbes America’s top colleges rankings, and others. Prior to becoming Millikin’s 16th president in 2020, Dr. Reynolds served as president of Wilmington College in Ohio, where he led the creation of a new campus-wide strategic planning process. Over his career, Dr. Reynolds’ scholarly work has been published extensively and his classroom excellence has resulted in six teacher-of-the-year awards.
