Our Investment Approach
Your Path to Long-Term Success
What exactly is SAA?
SAA stands for Strategic Asset Allocation. To TIFF, SAA means customizing the long-term weightings for the four major asset classes: Public Equity, Private Equity, Diversifying Strategies, and Public Fixed Income. Research has shown that for nonprofit portfolios, SAA is an important driver of long-term outcomes.
How will TIFF customize SAA to my organization?
Nonprofit organizations are different from one another across a variety of dimensions. We work with investment committees to understand financial circumstances, liquidity needs, and risk preferences to arrive at the SAA that fits your organization. Every SAA engagement focuses on delivering an investment program that we believe will allow the organization to better accomplish its mission.
Are there SAA philosophies or best practices that typically extend across all clients?
While we customize SAAs to suit each organization’s distinct circumstances, our portfolios are built upon a foundation of time-tested principles that have contributed to our success. These include:
- Equity as the cornerstone
- Private Equity exposure as liquidity needs allow
- Hedge Funds as a source of alpha and diversification
- Fixed Income for liquidity
Seeking Outperformance Through Three Key Elements
Asset Class Views
Our modest overweights and underweights to the major asset classes are driven by long-term fundamentals rather than short-term market fluctuations. By patiently waiting for the right opportunities, we believe we can enhance long-term returns.
The cornerstone of our investment program, largest source of historical outperformance, and most significant source of active risk. We partner with carefully chosen third-party investment managers that we believe can outperform their respective benchmarks over the long-term.
Micro-oriented segments of the capital markets can become dislocated, allowing savvy investors opportunities to generate value. Our portfolio construction approach revolves around skillfully underweighting and overweighting countries, sectors, and industries within asset classes.
For more information on how TIFF can help your organization, simply click the button below to contact us today! We look forward to hearing from you.