As a nonprofit fiduciary, asking these questions can help you plan for 2022.

Author: Kevin Schmid

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As nonprofit organizations continue to adjust to life after COVID-19, their investment portfolios have likely been a bright spot in an otherwise challenging operational environment. While the financial markets have experienced relative calm in 2021, we must continue to look forward and evaluate current risks and opportunities. As such, we have prepared ten questions that nonprofit fiduciaries should be asking about their investment portfolios.

  1. How do you define risk?
  2. Are you overvaluing liquidity?
  3. How sensitive is your portfolio to interest rate movements?
  4. What is your optimal investment management cost structure?
  5. Have you explored alternative sources of portfolio income?
  6. Is your portfolio managed in alignment with your organization's principles?
  7. How protected is your portfolio against inflation?
  8. Is your asset allocation in alignment with your spending policy?
  9. Are you comfortable with/aware of the downside risk in your portfolio?
  10. How do you evaluate your current investment advisor?

Gallagher's Investment and Fiduciary Consulting practice is available to help you address these questions and concerns about your investment portfolio.

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Gallagher Fiduciary Advisors, LLC ("GFA") is an SEC Registered Investment Adviser that provides retirement, investment advisory, discretionary/named and independent fiduciary services. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of AJG or its affiliates or to independent contractors; such payments do not change our fee. Securities may be offered through Triad Advisors, LLC ("Triad"), member FINRA/SIPC. Triad is separately owned and other entities and/or marketing names, products or services referenced here are independent of Triad. Neither Triad, Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice.

This material was created to provide accurate and reliable information on the subjects covered, but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.