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Acting in Your Best Interest

Helping a Foundation Optimize Their Portfolio to Make It More Liquid and Morally Responsible Compliant

A Foundation’s portfolio was comprised of nearly 70% very illiquid products with high fees and strict guidelines as to what securities could be included in the portfolio. 

Innovest performed extensive due diligence on all the illiquid managers through research on their philosophy and process as well as visiting their offices. Through this exercise, Innovest gained a better understanding of the portfolio and the securities that would be screened out of the portfolio.  Innovest, in conjunction with the client decided to redeem close to 33% of these illiquid allocations. A majority of the strategies underperformed, had qualitative issues and did not meet their screening criteria. We were able to reallocate capital into more liquid asset classes and further diversify the portfolio. Currently, less than 40% of the portfolio is illiquid, all products meet their social screening criteria and as a bonus portfolio fees were reduced by 25%.