5 Reasons Nonprofit Boards Are Changing Investment Advisors

Is it time to consider replacing your organization’s investment advisor? If any of these 5 concerns resonate with you, it might be time to find a new investment partner.

1. Poor Investment Results

When your investment program accounts fail 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, adjusting 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 regarding your organization’s assets. Advisors who communicate regularly help ensure everyone is on the same page concerning your organization’s investment goals and results.

The eCIO Difference:

We provide consistent communications regarding the progress of your investment program. We deliver timely, convenient, and comprehensive reporting 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 and performance relative to your custom benchmarks, current asset allocation, holdings, and recent portfolio activity. Your advisor team is always easily accessible via phone, video conference, and messaging.

3. Paying Too Much in Advisor Fees

Since many nonprofits work with advisors who do not specialize in institutional portfolio management, they pay 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 support 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.

eCIO is the Chief Investment Officer for Nonprofits

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 nationwide choose eCIO over traditional investment advisors. Schedule a time to talk!

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*eCIO charges an advisory fee of 0.50% on the first $10,000,000 and 0.25% thereafter with a minimum annual fee of $5,000. A sample portfolio invested in eCIO's indexed ETF investment track has an average investment cost of 0.04%. In addition, eCIO has a more expensive separately managed account and Socially Responsible Investment options. 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.