Funds Management

We believe investment success is the result of:
  • A focus on the long term;
  • Diversification across a variety of asset classes, styles and strategies;
  • The careful evaluation of market characteristics followed by the application of informed, professional judgment in the construction of investment programs;
  • The retention of high-quality managers to execute specific assignments;
  • Consistent review;
  • Disciplined risk management.
Key elements of our philosophy are:
  • Informed research to collect data and research that uncovers or discovers opportunities;
  • Rigorous analysis and quantitative assessment to anticipate opportunity by discerning patterns of valuation;
  • Opportunistic fund management to take advantage of secular market shifts and short term market anomalies;
  • Market continuity to have a long-term perspective and commitment over market cycles and deliver alpha-generating strategies across all asset classes;
  • Capacity to place investment performance ahead of fund size and to close funds for new investment if the opportunity set narrows.

Management

The UND Foundation is proud to work with SEI, our outsourced chief investment officer. SEI has been delivering investment outsourcing solutions for more than 25 years and manages $21.2 billion on behalf of 169 nonprofit clients (as of June 30, 2016.) SEI’s professionals created a custom investment portfolio designed to meet our organizational and financial goals, and the SEI solution allows us to focus on fulfilling our university's mission.

Alerus Financial provides Charitable Remainder Trust (CRT) donors:
  • Personal account administrator
  • Introduction packet
  • Quarterly account reports, including portfolio holdings and account activity
  • 24-hour account access
  • Investment performance information available upon request
  • Trust administration fee of 3/10th of 1 percent

Fund Type

Charitable Trust Investments

Each CRT has individual goals and objectives. Six portfolios have been developed to meet the objectives of each trust.

  • Tax-Advantaged Income Portfolio
  • The Tax-Advantaged Income Portfolio has a target asset allocation of 80% bonds and 20% stock. It includes allocations of domestic and international securities and tax-exempt bonds, with a small (less than 2%) exposure to commodities and real estate. Primarily, it provides tax-exempt income with a secondary emphasis on growth. The portfolio is intended for trusts positioned for mild investment volatility and tax-exempt income.
  • Conservative Portfolio
  • Like the Tax-Advantaged Income Portfolio, the Conservative Portfolio has a target asset allocation of 80% bonds and 20% stock. It includes allocations of domestic and international securities and bonds emphasizing total return and high-yield. The portfolio has exposure (less than 2%) to commodities and real estate. Primarily, it provides income with a secondary emphasis on growth. The portfolio is intended for trusts positioned for mild investment volatility and having an investment horizon of two to five years.
  • Moderate Portfolio
  • The Moderate Portfolio has a target allocation of 60% bond and 40% stock. It includes allocations of domestic and international securities and bonds emphasizing total return and high-yield. The portfolio has exposure (less than 3%) to commodities and real estate. It provides both growth and income. The portfolio is intended for trusts with an investment horizon of five or more years and those that accept moderate annual investment volatility.
  • Conservative Growth Portfolio
  • The Conservative Growth Portfolio has a target allocation of 40% bond and 60% stock. It includes allocations of domestic and international securities and bonds, emphasizing total return and high-yield. The portfolio has exposure (less than 5%) to commodities and real estate. Primarily, it provides growth with a secondary emphasis on income. The portfolio is intended for trusts with an investment horizon of seven or more years and those positioned to accept moderate annual investment volatility.
  • Growth Portfolio
  • The Growth Portfolio has a target allocation range of 20% bond and 80% stock. It includes allocations of domestic and international securities and bonds emphasizing total return and high-yield. The portfolio has exposure (less than 6%) to commodities and real estate. The focus is on more aggressive growth. The portfolio is intended for trusts with an investment horizon of ten or more years and those that accept significant annual investment volatility.
  • Index Portfolio
  • The Index Portfolio targets an asset allocation of 40% bond and 60% stock. Index funds are used to cover total market exposure to bonds, domestic and international stocks. The portfolio is designed to emulate the market universe.

Moderate Portfolio Theory is applied to determine appropriate exposures to different asset classes in order to build the most efficient portfolios. Primary components include:

  • Equity: Distributed among sub-asset classes including large-, mid- and small-cap domestic and international equity
  • Fixed-Income Assets: Distributed among US Treasury/Agency; Domestic High Yield; International; Domestic Corporate; Mortgage Back Securities; and Floating Rate Securities

Gift Annuity Investments

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