Institutions
Mission-Aligned Investment Guidance and Management
Corporations, endowments, foundations, and nonprofits must balance complex choices across risk tolerance, time horizons, liquidity needs, and potential tax implications. Success is not always defined as purely the maximizing of investment returns. At HB Wealth, we bring clarity, structure, and tailored insight to every relationship, aligning an investment strategy with each client’s unique needs. Our fee-only fiduciary model seeks to ensure that your organization’s goals remain paramount and drive every decision.
How HB Wealth Can Help You Achieve Your Organizational Goals
Outsourced Chief Investment Officer (“OCIO”) Model
We believe expertise matters. By outsourcing the role of managing your organization’s investments to HB Wealth, your team can focus more on strategic decisions, day-to-day operations, and directly serving the community (in the case of nonprofits) by alleviating ongoing investment management tasks (e.g., portfolio reporting, investment strategy implementation, and monitoring/rebalancing).
Dedicated OCIO Team
Your team will be primarily led by CFA charterholders and will work full-time to manage the portfolio, unlike your volunteers or employees who have other important responsibilities. (See HB Wealth’s OCIO Service Model below.)
Collaborative Investment Policy Development
We believe in working together to build a practical investment policy statement (IPS) that is easily understood by the key people involved in the organization and then translating that IPS into an effective investment game plan aligned with your specific income and liquidity needs.
Operating in Partnership with You
We focus on communicating to the Board/Investment Committee and staff in an easy-to-understand approach, combining sophisticated online reporting with clear explanations of the factors affecting the portfolio and how we plan to navigate the road ahead.
Fiduciary Fee-Only Investment Approach
HB Wealth strongly believes not only in being a fiduciary but in working to avoid conflicts by only being paid by our clients. When we make an investment recommendation to you, there is no reason for you to wonder if we are getting paid behind the scenes in a way that would influence our recommendation. Our “same side of the table” mindset is a core value of our firm and has stayed consistent since our founding in 1989.
Customized Investment Strategy
We believe in aligning your investment game plan according to your organization’s unique needs. We are not a cookie-cutter manager of investments, and our development of your IPS and portfolio allocation will consider the interactive discussion with the Board/Investment Committee at the beginning of our relationship and over time.
Why Consider HB Wealth as Your OCIO?
Fee-Only Fiduciary Alignment
As a fee-only fiduciary, HB Wealth has no backdoor incentives, no internal platforms, or products to sell. We are solely focused on advancing your organization’s best interests.
Institutional-Grade Expertise with Concierge-Level Service
With $2.4+ billion in institutional assets under management, our experienced service team brings deep expertise to your organization. Our experienced client service team has both institutional and family office backgrounds, delivering high-touch, responsive support tailored to your needs, from strategy and reporting to daily administration.
Sophisticated Investments Without Pressure or Added Cost
We offer access to sophisticated investment strategies—without financial incentives or upcharges. This includes internally managed bond ladders and dividend growth strategies (available at no additional cost), as well as private credit, private equity, and real estate opportunities, including fund and direct investments, as well as an “absolute return” multi-strategy hedge fund of funds.
Advantaged Access
HB Wealth offers you the ability to view your portfolio performance details at any time 24/7 online, including all public and private investments.* You will also have access to confidential preferred low-cost margin lending if desired.
HB Wealth’s OCIO Service Model
Wealth Advisor
A wealth advisor will be your primary point of contact and relationship advisor.
Client Service Associate
Assists OCIO team with any administrative functions, document preparation, and money movement.
Advisory Associate
Assists OCIO team in portfolio management and reporting.
Investment Department
Collaborates with the OCIO team on portfolio strategy; available to meet with Board/Investment Committee to discuss specific topics.
Additional Services
Part of our duty to our clients is to ensure that the members of the Board/Investment Committee are kept informed of various topics regarding financial planning and investment management that are relevant to your organization. These include, but are not limited to:
- The latest trends and regulations affecting the non-profit/charitable environment.
- Third-party economic research to aid in financial decision-making by the organization.
- Independent due diligence for investment opportunities that may be brought to the attention of committee members from other relationships.
- Discussions with staff regarding appropriate withdrawal levels and forecasting of future portfolio levels based on current trends and investment allocation.
- Assisting the Foundation with reporting stock gifts and selling the gifts/transferring the funds as desired either into the endowment or into operating funds as requested.
Getting Started
Building a plan to balance near-term needs and long-term sustainability for your organization.
- Our process starts with a review of prior investment policy statements and a discussion of our fresh perspective with Board members, including:
- Identifying cash flow situation and long-term liquidity needs.
- Assessing need/ability to take risk vs. willingness to take risk.
- Discussing desired risk comfort for the portfolio (considering the prior two bullet points).
- Assessing income and total return targets for portfolio vs. market expectations.
- Using the points above, we will then work with Board members to model different cash flow scenarios within our cash flow planning software (eMoney). These scenarios might include increased giving in certain years, funding level changes, and/or market events. This modeling helps the Board to set a comfortable level of distributions in the near term while helping to ensure the long-term sustainability of the portfolio to serve the community or organization.
- These outputs and our discussion are then used to update or develop a new IPS for board approval including a target for investment returns and appropriate asset class allocation ranges.
- From there, we design a portfolio allocation appropriate for current market conditions within the guidelines of the IPS.
- Finally, we execute the game plan and begin monitoring for adjustments/rebalancing. Quarterly updates provide clarity on current allocation vs. IPS ranges as well as performance relative to targets and benchmarks.
Custom Reporting for Your Organization
While we have a standard reporting package commonly used for most of our OCIO clients, ultimately, we will tailor the reporting package to meet the needs of your organization. We start our OCIO reports with a simple dashboard that allows the relevant committee members to quickly see the allocation, performance, dollars in and out, and movement over time of these factors at a glance. We also include a summary of total manager expenses so that the organization is aware of total fees paid to us vs. those paid directly to other managers (remembering that we have no incentive to use any specific manager and that we typically seek to keep costs as low as possible where we do not believe the potential returns justify the extra expense). Performance reporting includes comparisons to benchmarks overall and by asset class, and if alternative investments are part of the portfolio, then additional reporting shows IRR performance and other relevant information.
Treating Your Organization Like A Family
At HB Wealth, we understand the complexities of an institution and the unique needs and goals that exist in that structure. That is why we partner with you to tailor our services based on what is best for your investment management objectives and do not follow a standardized approach. We are not a cookie-cutter manager of investments, and we believe our focus on personalization and high-touch client service will help your organization thrive. Ultimately, we treat your organization like one of our client families, with the same focus on personal relationships and personalized service aligned with your needs.
Please click here to read important disclosure information, terms, and conditions
*Private investments are illiquid and are exposed to various risks, including, but not limited to, potential for complete loss of principal, liquidity constraints, and lack of transparency of the underlying investments, as more fully discussed in the private fund’s offering documents; investors cannot be assured that private fund investments will produce returns superior to those of the public markets; the fees associated with investing in private funds may be significant, and could potentially be layered; unlike liquid investments that a client/investor may maintain, private fund investments do not provide daily liquidity or pricing; investors are required to make certain representations regarding their financial qualifications for the purpose of determining whether the investor may invest and at what amount; private fund investments could complicate and potentially delay an investor’s ability to file taxes, and so should seek professional tax advice before investing in a private fund. This is not a solicitation, offer, or recommendation and some of the information has been sourced by a third party. Please consult your HB Wealth client service team to determine if private investments are suitable for your overall investment portfolio, and to determine the appropriate allocation to private alternative investments if used in the portfolio.