An OCIO relationship to help you create lasting success
When serving as your outsourced chief investment officer (OCIO), our investment process begins with your organization. First, we spend time understanding your institution’s unique circumstances – including your mission, funding considerations, and spending needs – priorities, and short- and long-term risk and return goals. Then, we design an investment plan that seeks to meet your spending needs and preserve your portfolio’s long-term purchasing power.
Our approach to investing for endowments and foundations combines our focus on partnering with the world’s best investment managers across asset classes to help clients preserve and grow capital. We augment our investment offering with comprehensive OCIO solutions to enhance the management and operations of your institution so you can succeed.
We invest alongside clients and manage their investments as if they were their own. This creates a unique investment culture and distinct alignment of interests with our clients. As an investor who has stewarded our own institution for over 200 years, our unique perspective can help you achieve your goals over long time horizons.
How we construct endowment and foundation portfolios as your OCIO
It is our job as your OCIO to build a portfolio to achieve your long-term goals and mission. Our portfolios for endowments and foundations combine our deep experience partnering with those we believe are the world’s best investment managers with our unwavering focus on helping institutions preserve and grow capital. The driving principles behind the portfolio are as follows:
| Equity Bias | Adequate Liquidity | Prudent Leverage | Risk Management | Active Rebalancing |
|---|---|---|---|---|
| We view an equity bias as necessary to ensure spending needs can be met on an annual basis while preserving the portfolio’s purchasing power. | We believe endowment and foundation portfolios must have adequate liquidity to ensure spending needs can be met. | We do not believe that leverage is necessary to generate strong long-term returns; when used, we believe it should be modest. | We believe strategies and assets that bear less correlation to the wider markets or behave in a countercyclical manner can add practical value to endowment and foundation portfolios. | We believe that tax-exempt portfolios should be rebalanced to model when actual allocations are outside of target ranges. |
BBH Partners and senior executives have deep experience creating financial solutions for tax-exempt organizations and acting in a fiduciary capacity as nonprofit board members, enabling us to best serve our endowment and foundation clients as their OCIO.”
The BBH OCIO difference
- Investment office for hire: We are the closest firm to building out your own internal office, providing discretionary investment management, banking, lending, philanthropic advice, custody, and reporting services. We are a complete replication of the structure utilized by the largest and most successful endowments in the world. For endowments and foundations that choose not to amortize the cost of a fully built out internal team, we fill that void.
- Extension of staff: We do not replace your team – we enhance it. We operate to make it feel like we are sitting on campus or in your foundation’s offices.
- Expertise: We have been serving as an OCIO for more than 90 years. Our investment team is led by three former endowment and foundation office alumni.
1 Borrowed funds cannot be used to purchase securities in the portfolio.
This communication is for informational purposes only. The information herein has not been based on a consideration of any individual investor’s circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. Individuals should consult their personal tax, accounting and legal advisers regarding any potential investment or strategy. Any views and opinions are subject to change at any time.
This material does not constitute an offer or solicitation in any jurisdiction where or to any person to whom it would be unauthorized to do so.
Investment Advisory Products and Services:
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
