Fulfilling the mission of your not‐for‐profit organization, foundation or endowment calls for committed employees, involved volunteers and sound financial planning. When it comes to managing your organization’s assets, balancing the needs of today with growth for tomorrow is crucial. Having the right investment partner can make all the difference.

Our institutional advisory professionals at Johnson Financial Group combine a blend of experience and investing acumen, with leading technology and access to investment managers to create customized portfolios that not only address our clients’ short and long‐term goals, but also work to support and achieve their broader mission and purpose.

Learn more about our approach to providing advisory and consulting services below.



Investment Policy

A written investment policy is imperative for the proper management of an institutional portfolio, because it ensures continuity of your guidelines and objectives over time. Our clients play an important role in the creation and modification of the investment policy statement. In fact, during the initial planning process, we view our role as an educator and sounding board. We assist our clients by helping them understand asset classes, asset allocation, and industry best practices. Our clients then help develop or modify the statement based on these understandings.

The institutional advisory team at Johnson Financial Group creates an investment policy for each of our clients, documenting objectives, directives and responsibilities. As part of your investment policy, an asset allocation strategy is also designed. Before an asset allocation strategy can be implemented, asset classes and targets, benchmarks, desired rates of return, as well as key roles and responsibilities, must be defined and approved.

Guidelines specific to responsible investing are also included to help ensure that your organization’s directives are followed and that your investments help support your mission and purpose.

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Portfolio Management

An important part of ensuring the vitality of your organization, and its financial well‐being requires you to have a solid investment plan in place. Your team at Johnson Financial Group has a rigorous, disciplined process to ensure we consistently design appropriate investment strategies to help achieve your organization’s mission and objectives. Learn more about our Portfolio Management capabilities.

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Socially Responsible Investing

Beyond your day‐to‐day activities, organizations can further their missions and the missions of affiliated organizations by structuring their investment portfolio to reflect their values. As a client, the institutional advisory professionals at Johnson Financial Group will help educate you on different investment strategies including:

  • Social and environmental screening
  • Shareholder advocacy
  • Community investing
  • Social venture capital

Additionally, we recognize that it is important for decision‐makers to understand the potential impact on their expected investment returns when using any of these strategies. That’s why we document possible trade‐offs, conduct due diligence, and work to maintain continuity of the decisions over time.

Together with you, once we have determined the social and environmental screening as well as the strategies, guidelines are added to the investment policy statement, investment selection begins, and our monitoring practices are implemented.

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Custodian Reviews

Custodial services can be an important component of any investment program. Beyond the role of safekeeping assets, a custodian’s trading capabilities, access to investment products, portfolio reporting, and client service are also some of the key considerations. Our insights on these services and related fees can help reduce your overall cost of investing and, thereby, help you retain assets.

Client specific requirements are incorporated into the review as well as an analysis of fees, transaction costs, available money market funds, and possible additional charges to move cash balances for daily investment. Online access is important for some clients and a custodian’s ability to securely deliver electronic information is also considered, especially as we consider ways to control administrative costs.

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Investment Committee Education

Important components of meeting fiduciary responsibilities include understanding the investment topics and the basis for both current and historical decisions. More formal education for committee members through on‐site training sessions and periodic presentations can help members develop an understanding of key topics, including:

  • Industry best practices (investment management)
  • Asset allocation and asset class review
  • General economic and market updates
  • Issues to consider regarding socially responsible investments
  • Fiduciary responsibility

In addition to educating current committee members, our institutional advisory professionals spend time with incoming members to explain the portfolio, the investment policy statement, any relevant history regarding changes, the decision‐making process, and related roles and responsibilities.

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Areas of Specialization & Our Approach

Johnson Financial Group’s focus on mission‐driven organizations provides both consulting and investment advisory services. Our approach includes a thorough review and recommendations regarding your excess working capital, funded depreciation, foundation and retirement assets.

Investing is far more complicated than simply attempting to make money. We work with each of our clients to fully understand their organization’s goals, their decision‐making process, as well as how their assets will eventually be used. These factors and others help form the basis of well‐designed and effective investment objectives, guidelines, and strategies.

Review our areas of specialization below to learn more about our approach.

Not for Profit Organizations

Hospitals and Senior Living Communities

Our primary objective is to assist you in building risk‐controlled investment portfolios that maximize returns within a balance sheet context. Our experience serving not‐for‐profit Hospital and Senior Living Communities sectors enables our institutional advisory professionals to provide tailored solutions to assist in meeting their specific goals and objectives.

We start by working to understand and integrate aspects of your business cycle with the stages of our investment cycle methodology to determine an overall risk budget for your organization. We believe that this apporach is a key component of developing a strategic partnership.

We focus on four important aspects:

  • Integrated Risk Budgeting
  • Policy and Portfolio Construction
  • Investment Outlook and Manager Research
  • Measuring Outcomes and Investment Attribution

The result is a solution that purposely allocates your investment risks into your organization’s operating environment, capital structure, and required minimum rate of return.

Our Approach: Not‐for‐profits

To determine the flexibility needed to respond to your not‐for‐profit organization’s business cycle or any changes in its operating environment, strategic plan, liability structure, and desired return on investments, we begin by gaining a strong understanding of your organization. We’ve found that as risks in one area change, other areas typically must also be adjusted.

Aspects we consider in formulating a risk budget for your not‐for‐profit organization include:

  • Strategic plans, capital expenditures and financing needs
  • Debt structure and cost of capital
  • Financial ratios relative to bond covenants
  • Operating budget and forecasts
  • Payor mix and reimbursements
  • Service utilization and trends

These considerations become the basis for forming your investment policyallocating your assets, creating your risk management strategies, building your portfolio, and selecting your investments. Our customized performance reporting tools then enable us to evaluate and oversee the progress towards realizing the purpose of your assets.

Our approach is ongoing. Annual reviews and participation on planning and budgeting calls help to ensure the continued appropriateness of your investment strategies.

As part of our ongoing commitment we also share industry and benchmark information each year. We encourage you to participate in our annual Senior Living Study, as it becomes available. Your participation provides you the ability to learn how your peers approach their investment challenges and opportunities.

Foundations and Endowments

Foundations and endowments are typically viewed as long‐term and perpetual assets and, as such, are often invested to maximize returns within reasonable risk tolerances. Therefore, we take a much more subtle view and review of the purpose of the assets and determine reasonable risks when creating an investment approach.

We recognize that for beneficiaries of a foundation or endowment, a significant decline in the portfolio will impair the value of distributions. When foundation or endowment portfolios are constructed without considering the distinct purpose of the assets, the ability to maximize distributions can be hindered.

Our Approach: Foundations & Endowments

Designing investment strategies to align with a foundation or an endowment’s purpose requires a keen understanding of:

  • Spending and disbursement policies, including any ramifications of not achieving stated goals
  • Historical and expected distribution budgets
  • Donation history and future fund raising plans and goals
  • Your organization’s financial strength, risk budget and strategic plans

These considerations become the basis for forming your investment policy, allocating your assets, creating your risk management strategies, building your portfolio, and selecting your investments. Our customized performance reporting tools then enable us to evaluate and oversee the progress towards realizing the purpose of your assets.

Our institutional advisory approach is ongoing. Annual reviews and participation on planning and budgeting calls help to ensure the continued appropriateness of your investment strategies.

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Senior Living Study

Filling a Gap

You make big decisions about your organization’s future based on the data available. We want to make sure you have information to invest, adapt and plan ahead when reviewing one of your biggest assets: your investment portfolio. That’s why we developed our Senior Living Study—to share important industry information with you, your peers, rating agencies and other stakeholders.

Helping You, Helping Us

For organizations that participate in our study we share information and benchmarks on investment programs, industry best practices and strategic planning. We use the study to understand industry trends, which allows us to be a more effective partner to our clients and the Senior Living organizations we serve.

2018 Senior Living Study

Our 2018 Senior Living Study is closed. Results will be released in November. Please check back in February, 2019, to participate in the next survey. Download our latest Senior Living Study

By participating in the survey, you are guaranteed to be among the first to receive the results, customized for your organization, leadership team and board. As an added benefit, you are building valuable data for the Senior Living Industry, which can bring more insights into your own organization.