NOT FOR PROFIT
OUTSOURCED CIO SOLUTIONS

A total portfolio investment management solution focused on your for purpose goals.

For more than 30 years Russell Investments has provided investment advice and management services to non-profit organizations.

Our collaborative experience with clients gives us a solid understanding of, and appreciation for the challenges you face in balancing your public interest activities with the preservation and distribution of assets.

Lay the right foundations from the start

This is one of five essentials step of an investment program learn more.

Step 01: Objective

The objective step for a not-for-profit organization is arguably the key step in the process. It's where the key members of that organization need to sit down and really sort of draw out what their mission goal is. What is the objective for the entire organization? Through that articulation, we, as your investment consultant, can start to form that into what are the investment objectives that are likely to provide a good chance of meeting those mission objectives. That's where you're just tying those different objectives together.

If you just look at your investment objectives in isolation, who knows whether they're going to meet those mission objectives and what the society, trust, or fund is really looking to achieve. Almost as important as setting the investment objectives is defining those investment constraints that you need to build that portfolio within. For a not-for-profit organization, this comes from the source of cash flows into the fund, the spending requirements, the liquidity requirements, and any ESG constraints around their investment policy.

Defining those upfront is key to putting together a portfolio that meets all of their goals, be they return risk or just ethical investing. For example, universities often have an environmental objective, but they may have a social objective as well. They focus not just on having a neutral or positive effect on the environment but also want to have a positive impact on society and individuals' health, for instance.

It is challenging having multiple sets of goals because sometimes they don't always align. Even over a medium term, you may construct a portfolio that is ticking your ESG objectives, but it might not be ticking your performance objectives and vice versa. You need to strike a balance between the two because you can't always have both.

Recently, we worked closely with an organization that came to us as a new client. They had just increased the size of their funds and realized they needed to step through this investment objective process to work out how to invest those assets. The funds were sitting in cash, not achieving the long-term goals they had as an organization. It was through stepping through that process that they were able to assess their level of risk and return targets and therefore invest their portfolio. Over time, that portfolio will provide much greater returns to their organization and help them exist longer into the future.

Benefit from our tailored non-profit OCIO solutions

We have been providing OCIO services to NFP organisations for over 30 years. In that time, we have built a suite of products and capabilities which will allow you to:

  • Refocus your attention on the strategic decisions which drive most of your portfolio returns
  • Benefit from daily portfolio management, reducing the need to spend significant time reviewing past performance in quarterly meetings
  • Make certain that short-term market shifts are managed, monitored, and mitigated in real-time
  • Take non-investment issues such as reporting, administration, audit support, and accounting off your plate

Our comprehensive solution builds on our award-winning manager research, global team of investment professionals, in-house implementation and administrative expertise, and our willingness to act as a co-fiduciary for your assets. Our entire solution is designed to help you increase returns and reduce risk – all at a competitive price.

Explore more with these related links:

  • Non-profit spending policy options
  • Materiality matters: Targeting the ESG issues that can impact performance
  • Elements of a clearly defined investment policy statement for non-profits
  • How do your investment committee meetings measure up?

Looking for more non-profit related research? Visit our Insights library for the latest research.

Looking to include ESG in your outsourced CIO solution?

We believe institutional investors can incorporate ESG factors into their investment solution without sacrificing potential returns. And we also believe it's more crucial than ever before.

Reviewing your investment program?

The not-for-profit handbook and online guide are designed to provide practical advice, planning tools and best practice information to help achieve a successful investments program

Not for profit
investment handbook

Designed to provide practical advice, planning tools and best practice information, our handbook steps through key areas needed to successfully run an investment program.

Not-For-Profit Investments Handbook

Online not for profit investment guide

Our handbook steps through key areas needed to successfully run an investment program.

 

Not-For-Profit Investments Handbook

Frequently asked questions

How does Russell Investments support Australian non-profit organisations?
Russell Investments delivers expert guidance in developing a tailored investment strategy for NFP goals
How can NFP organisations align their investment portfolio with their values?
Not-for-profit organizations can ensure that their financial resources are directed toward investments that reflect their mission and contribute to a more sustainable and responsible future. There are many strategies that can be implemented across your portfolio to achieve this. Please visit our responsible investing solutions for more information

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Please reach out to me directly or send an email to connect.

Oscar Lonergan Corti

Oscar Lonergan Corti

Institutional Partnerships Manager