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Investment Policy

RMI has expertise in all areas of managing assets for endowments and foundations.  We will work closely with an organization in developing a sound investment policy that conforms to the Uniform Management of Institutional Funds Act (UMFIA), which is soon to be updated and superseded by the Uniform Prudent Management of Institutional Fund Act (UMPIA).

Developing a Spending Policy

If creating an endowment entails many special challenges, so does managing and investing it. Foundation boards and staff face many difficult questions about endowment financial oversight, such as who should manage endowment funds, how to preserve principle while still gaining the highest rate of return, and how to use income from the endowment.

Spending Policy and Investment Policy are intricately connected to one another.  For a spending policy to be successful, it must reflect a future expected rate of return that supports the spending policy, inflationary pressures, as well as fund and management expenses.

Investment Policy Statement

One particularly tough issue for endowed organizations and foundations is how much investment strategies should reflect an organization's mission.  If a foundation is investing in stocks, should it screen out companies that are environmentally or socially irresponsible, or should it only seek the highest return?  Is there perhaps some way that endowment investments could reinforce a foundation's mission?  At RMI, we work with the board and staff to define and clarify these issues and incorporate them into the Investment Policy Statement, along with the asset allocation, fund restrictions, benchmarks and review processes.

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Monte Carlo Simulations on Spending

We also have the capability to test the probability of achieving any stated spending policy against the investment asset allocation.  This should provide the organization with the confidence to maintain the asset allocation through the difficult times when markets are experiencing serious negative setbacks.

Communication

RMI will meet quarterly with board and staff to review the portfolio and assure the institution is following policies.  As new contributions are added to the portfolio, RMI will advise the board on the appropriateness and use of new funding, as well as help with the accounting of funds.

Reduced Fee Structure

As part of our values and philosophy, RMI offers a reduced fee structure for all non-profit clientele.   We understand the difficulty and the pressure to raise capital in the non-profit world and this is our way of helping these vital institutions.