Transcript Expand Your Money`s SAT

Jewish Endowment & Foundation Investment
Institute (JEFII)
Access to Success
Retooling CJP’s Investment Operations: A Case
Study in Increasing SAT (Size, Access and Talent)
JFNA 2015 Investment Institute
February 2015
Alan Leifer, President Leifer Family Fund
Founder of Boston’s Jewish Community Endowment Pool
Immediate Past Chair of JFNA’s Investment Institute
[email protected]
www.leifer.org
1
JEFII’s Vision
Our vision is for the world of Jewish
philanthropy to define the standard of
excellence in the governance and
management of long-term capital.
Increase SAT - The Virtuous Circle of Endowment &
Foundation Management
Ultimate
Goal
Gain Share
of Jewish
Wallet
Strong
Governance
Increased Jewish
Philanthropic
Resources
Superior
Returns
Effective
Investment
Identify Barriers to Change and Develop
Strategies to Overcome Them
CJP Old Status Quo
(No SAT)
JCEP
• Donor engagement strategy
• Trusted fiduciary
• Too many conflicts
• Transparent operations
• Lack of expertise
• Superior access
• Low level of meeting time
• Best in class due diligence
• Fee driven
• Client focussed
• Meddling versus monitoring
• Talented leadership
4
Today, One Policy Portfolio – 150+ Users
$3 Billion Under Management Y/E 2014
•
Key Agencies’ Endowment Plans
Beth Israel Deaconess Medical Center, CJP, +25 Agencies/Affiliates
•
Boston Based Affiliated Organizations
Broad Institute, Facing History and Ourselves + 25 Temples, 5 Schools
•
Local Family Foundations and DAFs
Leifer Family Fund, Private Foundation +65 Others
•
National Jewish Federation Investment Program
JAFI, Birmingham, Memphis, Indianapolis + 11 Others
•
National Like-Minded Stakeholders
Private Foundation, Out of Region Day Schools
•
Defined Benefit Pension Plan
CareGroup
5
A Strategic Review of CJP’s
Investment Landscape
In 1998 We Had:
• $50 million in a Hodgepodge of Assets
Endowment, Supporting Foundation, DAF, Scheduled Assets
•
•
Mediocre Performance
23 Member Committee
1 Investment Volunteer, 0 Investment Pros, 22 Major Donors
•
•
50 Jewish Institutions/Foundations With Sizable
Assets Under Management in Boston
Strong Relationship with Beth Israel Hospital
6
Develop Investment Philosophy
• Total Return Philosophy
o Balance Interest and Dividends with Long-Term Appreciation
• Use an Investment “View” to Avoid Asset Allocation
Mistakes
• Willingness to be Contrarian and Spurn Fads
• Use of Alternative Investments
• Low Beta, High Alpha
• Carefully Monitor and Manage Liquidity
• Compound Returns by Reducing Risk
7
Rebrand and Relaunch
Jewish Community Endowment Pool, LLP (JCEP)
• Launched as a Pro Bono Effort of Boston’s Jewish Money
Manager’s Campaign Team in 1998
• “Free” to Non-Profits, Low Cost to Family Foundations
• Cut and Rationalize Fees
• Word of Mouth Marketing – “A Coalition of the Willing”
• “Brand Name” Investment Committee
• Focus on One Pool
8
Rebuild the Team
CJP/Caregroup Board of Managers
Current or Past Affiliations
•
Daniel Jick, Chair
HighVista Strategies
•
Alicia Cooney
Monument Group
•
Seth Klarman, Vice Chair
Baupost Group
•
Lawrence Lasser
Putnam Investments
•
Seth Alexander
MIT
•
Alan Leifer
Fidelity Investments
•
Stephen Berger
Adamas Partners
•
R. Gregg Stone
Kestrel Venture Partners
•
Matthew Bottein
Blackrock, Inc.
Affiliations for identification purposes only.
9
Expand The Network
CareGroup/JCEP Investors - $3 Billion
as of December 31, 2014
Abraham Joshua Heschel School
Adams Street Shul
Alef-Bet Child Care
Beth Israel Deaconess OB/GYN Foundation
Beth Israel Deaconess Radiological Foundation
Beth Israel Senior Citizens Housing, Inc.
Camp Ramah of New England
Camp Yavneh
Cape Cod Synagogue
CareGroup Investment Partnership
CareGroup Pension Plan
Chabad House of Harvard Square
Cheder Menachem
CJP Large Donor Advised Funds (64)
CJP Endowment
Cohen Hillel Academy
Congregation Beth El of the Sudbury River Valley
Congregation Beth Israel of Malden
Congregation Mishkan Tefila
Facing History & Ourselves
Falmouth Jewish Congregation
Frances Jacobson Early Childhood Center
Gann Academy
Harkham Hebrew Academy
Hebrew College
Hillel: The Foundation for Jewish Campus Life
Jewish Agency for Israel
Jewish Big Brother & Big Sister Association of Greater Boston
Jewish Big Brother & Big Sister Association of Greater Boston Endowment Trust
Jewish Community Center of the North Shore
Jewish Community Centers of Greater Boston
Jewish Community Housing for the Elderly
Jewish Family & Children’s Service
Jewish Family Service of Metrowest
Jewish Federation of Greater Indianapolis, Inc.
Jewish Federation of Greater Middlesex County
Jewish Federation of Greater Pittsburgh
Jewish Federation of Las Vegas
Jewish Federation of New Hampshire
Jewish Federation of Omaha Foundation
Jewish Federation of Palm Springs and Desert Area
Jewish Federation of Reading
Jewish Foundation of Memphis
Jewish Vocational Services, Inc.
Jewish Women's Archives
Maimonides School
Mayyim Hayyim Living Waters Community Mikveh
Memphis Jewish Federation
MIT Hillel
Private Family Foundations (2)
Rashi School
SAR Academy
Sarasota-Manatee Jewish Federation
Saval Charitable Trust
Solomon Schechter Day School
Synagogue Council of Massachusetts
Temple Aliyah
Temple Beth Avodah
Temple Beth Avodah Endowment Trust
Temple Beth Elohim Endowment Fund, Inc.
Temple Beth Shalom
Temple Beth Sholom
Temple B’nai Abraham
Temple Emanu-El
Temple Emanuel Endowment Fund
Temple Emanuel of Andover
Temple Emunah Endowment
Temple Isaiah of Lexington
Temple Israel (Boston)
Temple Israel of Natick
Temple Israel of Sharon
Temple Reyim
Temple Shaare Tefilah (Norwood)
Temple Shalom of Newton
Temple Shir Tikva
Temple Sinai
Tidewater Jewish Foundation
UJC of the Virginia Peninsula Endowment
UJF of Greater Stamford, New Canaan and Darien
Woodstock Area Jewish Community – Congregation Shir Shalom
10
Be Transparent and Benchmark Against the Best
JCEP Performance vs. The Cambridge Assoc. Elite 400
as of June 30, 2014
Average Annualized Return (%)
3 Years
5 Years
10 Years
JCEP
7.6
9.7
8.1
Median
8.5
(n=419)
11.5
(n=409)
7.3
(n=368)
Percentile
75th
91st
26th
Sharpe Ratio
1.16
1.47
0.81
Percentile ranks are based on a scale of 0-100, where 0 is best and 100 is worst.
Source: Cambridge Associates, LLC. Three, five and ten year returns are annualized and net of investment management and
custodial fees.
11
Measure Outcomes
DIRECT BENEFITS (Increased SAT)
$300 Million Family Donor/Foundation 2014 Inflows
$3 Million in DAF & Endowment Fund Fees Subsidizes Operations & Allocations
$5 Million Budget for Full Investment Office
17 Dedicated FTEs.
120 BPS Value Added Annually over 10 Years.
UN
INDIRECT BENEFITS (Gain Share of Jewish Wallet)
CJP Leadership
Chair (Current and Elect)
Campaign Co-Chairs (2010,2012,2013, 2014, 2015))
Overseas Chair
Budget Chair (Current & Immediate Past)
Young Adult Co-Chair
Annual Campaign At Peak - $54 Million
Money Managers Are Half Of $1 Million Annual Donors
Money Managers’ Donations Rose From 2% To 41% Of Annual Campaign
CJP Is Viewed As A Trusted Philanthropic Adviser To The Jewish Family Foundation Sector
12
RECAP: Steps to Increasing SAT
•
•
•
•
•
•
•
•
A Strategic Review
Develop Investment Philosophy
Rebrand and Relaunch
Rebuild the Team
Expand the Network
Be Transparent
Benchmark Against the Best
Measure Outcomes
13
The Virtuous Circle of Endowment
Management
Ultimate
Goal
Gain Share
of Jewish
Wallet
Strong
Governance
Increased Jewish
Philanthropic
Resources
Superior
Returns
Effective
Investment
14