5 Reasons Nonprofit Boards Are Changing Investment Advisors

5 Reasons Nonprofit Boards Are Changing Investment Advisors

Are you considering whether a new investment advisor may be better for your organization? You’re not alone! Here are 5 top reasons we’ve heard from our nonprofit clients as to why they decided to change advisors (and hire eCIO).

5 Reasons Nonprofit Boards Are Changing Investment Advisors

Do any of these sound familiar? Read on for more insights.

  1. Poor Investment Results
    When your investment program fails to reach established goals, programs can’t be funded, staff can’t be hired, and there may be scrutiny on your fiduciary oversight.

    The eCIO Difference:
    We work with your finance or investment committee to create an investment strategy designed to help meet your objectives. We actively monitor your portfolio, making adjustments as needed to keep your investment program on track. You’ll receive robust performance reporting so your committee and board fully understand your progress.

  2. Never Hear From Advisor
    Nobody likes surprises, especially when it comes to your organization’s assets. Advisors that communicate regularly help ensure everyone is on the same page with respect to your organization’s investment goals and results.

    The eCIO Difference:
    We provide consistent communications regarding the progress of your investment program. We deliver reporting that is timely, convenient, and comprehensive, designed to help oversight groups meet their fiduciary duties. For example, each quarter your committee members will receive a personalized video review of your investment program in which your advisor walks through your portfolio's change in value, performance relative to your custom benchmarks, current asset allocation, holdings, and recent portfolio activity. Your advisor team is easily accessible via phone, video conference, and messaging.

  3. Paying Too Much in Advisor Fees
    Since many nonprofits work with advisors that do not specialize in institutional portfolio management, they end up paying higher, retail financial advisory fees. Those high fees make a big impact on your portfolio over time.

    The eCIO Difference:
    eCIO is passionate about fee transparency and keeping costs low for nonprofits. On portfolios under $25 million, the average nonprofit pays 1.34%* in investment and advisory fees. As an eCIO client, you pay a 0.50% fee for all advisory services (then 0.25% on assets over $10 million) plus the costs associated with your underlying investments which can be as low as 0.04% for a diversified portfolio.

  4. Desire Nonprofit Specialization
    Many advisors lack experience working with institutional clients like nonprofits. Their value to your organization typically stops with basic asset management services.

    The eCIO Difference:
    We built eCIO from the ground up with a mission to partner with nonprofits like yours to provide custom investment solutions that help grow your financial resources and provide support to your board and oversight committees. Our dedicated nonprofit investment advisors are co-fiduciaries and deliver an investment process designed for nonprofits.

    💡Tip: Learn the difference between a typical financial advisor and a nonprofit investment advisor. Click here to download "Get the Most From Your Nonprofit Investment Advisor."

  5. Disappointing Digital Experience
    Some advisors provide a client portal that allows only authorized signers to download investment summaries but does not provide much additional value.

    The eCIO Difference:
    We offer committee and board members an immersive online portal where you can message your advisor directly, meet with your advisor virtually, receive monthly investment updates, access real-time account information, review quarterly portfolio video updates, and access all your investment documents.

If you are unhappy with your advisor for any reason,  we would be happy to give you a second opinion on your investment program.

Let us show you why nonprofits across the country are choosing eCIO over traditional investment advisors. Schedule a time to talk!

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*eCIO charges an advisory fee 0.50% on the first $10,000,000 and 0.25% thereafter. A sample portfolio invested in eCIO's indexed ETF investment track has an average investment cost of 0.04%. In addition, eCIO has more expensive separately managed account and Socially Responsible Investment investment tracks. According to an investment management fee survey by the Commonfund Institute, the average advisory and investment fee cost for endowment and foundation portfolios less than $25 million is 1.34%. Actual eCIO investment costs will vary for each client.

Learn more about your investment options. Download our Intro Kit.

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