OAKS, PA--(Marketwired - Jun 26, 2013) - SEI (
"An increasing number of conversations at nonprofit organizations are focused on finding the right level of spending in the face of lower expected returns and higher demands for the use of endowment assets," said Mary Jane Bobyock , Director of Nonprofit Advice, SEI's Institutional Group . "Since spending drives hurdle rates and hurdle rates drive strategic asset allocation decisions, it's no wonder that an effective spending strategy is a top priority for investment committees that have a fiduciary responsibility to safeguard these assets."
The white paper highlights several case studies of best practices, which nonprofits can apply to help guide them in building an effective spending strategy. The paper suggests that one way to be sure a nonprofit organization has chosen the best spending methodology moving forward is to map out past performance and spending to see where shortfalls might have occurred. Another example shows how different spending calculations can be applied to determine potential shortfalls in selecting the best methodology for current and future years. And a third analysis demonstrates the value of shocking different spending scenarios with an extreme drop in markets to estimate what the spending results might be and the potential impact on the long-term health of the portfolio.
"Spending varies significantly from organization to organization, from year-to-year, and by different methods, so it's imperative to partner with your investment provider to integrate your specific needs as you build your portfolio and monitor its progress on a regular basis," Mary Jane said.
To request a copy of the white paper, please e-mail: SEIResearch@seic.com .
About SEI's Institutional Group SEI's Institutional Group is the first and largest global provider of outsourced fiduciary management investment services. The company began offering these services in 1992 and today acts as a fiduciary manager to approximately 450 retirement, nonprofit and healthcare clients in seven different countries. Through a flexible model designed to help our clients achieve financial goals, we provide asset allocation advice and modeling, investment management, risk monitoring and stress testing, active liability-focused investing and integrated goals-based reporting. For more information visit: http://www.seic.com/institutions .
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