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INSTITUTIONAL: OUR WORK WITH CLIENTS
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OUR WORK WITH CLIENTS
Our client relationships are grounded in respect, trust, integrity and open communication. We strive to develop strong partnerships where we serve as an extension of our clients, bringing a fully resourced investment office to the task of managing the investment program.There are four key tenets which underlie how we work together.
Angeles maintains an unparalleled commitment to client service. Our investment officers, those who make portfolio decisions and oversee execution, assume the lead for client relationships. This offers clients valuable direct access to the professionals who are responsible for the management of their portfolio. This is in stark contrast to others in the industry that assign a non-investment professional as the client relationship manager.
As a co-fiduciary with each client, we are a true partner, aligned in overseeing their investment program. At Angeles, we seek long term relationships with clients whom we can develop mutually rewarding partnerships. It’s not about the quantity of clients we serve, but the quality of relationships we have. We measure our success by the success of our clients. It’s just that simple.
We understand the importance of being good stewards of clients’ financial assets, and the necessities in understanding their broader enterprise. It is imperative we collaborate with clients to understand their objectives, preferences, constraints, and operational needs. Quantifying their tolerance for risk is imperative so that we can ensure risks are right-sized and well managed, enabling them to withstand extreme market shocks and downturns. Open and frequent communications are the cornerstone of good collaboration.
We have a multi-faceted thought leadership and fiduciary educational platform available to clients, which includes the following:
- Research papers on a multitude of topics, including the global markets, economy, risk, ESG and governance.
- Online and onsite educational events. Board, donor and other stakeholder education and support.
ROLES AND RESPONSIBILITIES OF WORKING TOGETHER
Our clients are responsible for setting the overarching goals and objectives of their program, with our assistance in developing alternative investment policies for their consideration.
Clients also bear the responsibility for articulating enterprise-level considerations, liquidity needs, spending requirements, and mission-related objectives that affect the portfolio. Time is spent testing risk tolerance, particularly downside shocks. We see it as our role to ensure all of these objectives and cross-considerations can operate together to ensure durability and sustainability over time. Evaluating the client’s current holdings against the new objectives will often result in manager shifts and reallocations.
Next, Angeles assumes full responsibility for the management of the assets, within the defined guidelines. We are willing, however, to explore assignments where Angeles would have less than full discretion. Our back office team interfaces with custodians, reconciles trades, generates reports, and provides annual audit and tax support. Additionally, we bring support to help clients communicate with other constituents (e.g., board, donors, etc.) as needed.
CLIENT CASE STUDIES
SOLVING UNIQUE CHALLENGES TOGETHER
A COMMUNITY FOUNDATION ESTABLISHES A SOCIALLY RESPONSIBLE POOL FOR DONORS
Community foundations play a vital role in connecting members of the community with meaningful issues. Over time, donors have grown more mindful of how their charitable dollars are invested, while institutions have grappled with the challenge of how to prudently and thoughtfully engage with stakeholders on this complex topic.
For over a decade, Angeles has worked a with California-based community foundation with current assets of $120 million. More recently, donors have expressed an interest in climate change, sustainability, and other issues of societal import along with a desire “to direct their donations into an investment vehicle that more aligns with their values,” according to the Investment Committee Chair.
Maintaining consistency with the foundation’s mission and organizational strategies was a priority as Angeles worked with the Investment Committee to formulate an investment option for donors that incorporated the firm’s deep research on environment, social and governance (ESG) values, mission, and impact investments.
In early 2019, these efforts culminated in the foundation formally launching a new Socially Responsible Pool (SRP). The SRP provides donors with access to thoroughly vetted fund managers whose security selection and portfolio construction processes focus on companies that possess high sustainability ratings, engage in positive economic development, pay heed to renewable resources, and adhere to strong governance practices. On an ongoing basis, Angeles will review all holdings to ensure they continue to meet sustainability objectives while also delivering competitive net of fee performance results.
The SRP’s expected return profile and its underlying cost structure both compare favorably to the foundation’s pre-existing Long-Term investment pool, and donors have responded enthusiastically to the new option. The foundation is optimistic that over time this positive reception within the community will help attract additional assets to support the foundation’s grantmaking.
REAPING THE BENEFITS OF A BETTER GOVERNANCE MODEL
"A forest doesn't weep over one tree," noted Aleksandr Solzhenitsyn. Yet for decades, many fiduciaries have expended enormous energy on relatively inconsequential matters while shortchanging issues of true strategic importance.
In 2015, the Board of Directors for a $180 million private Foundation recognized that limited internal resources, coupled with individuals’ time constraints, required streamlining the organization’s governance structure. The Foundation hired Angeles to implement a discretionary OCIO model, which has enabled its Investment Committee to function more productively and efficiently.
Previously the client had maintained control over all manager-related decisions and even required firms to make presentations at monthly Board meetings. After ceding this authority, the Committee was able to work with Angeles to explore the expected benefits and tradeoffs associated with adding private market investments to the portfolio.
Ultimately the Board amended its Investment Policy Statement so that Angeles could further diversify into private market opportunities. Over time, this decision has the potential to improve the return of the Foundation’s investment portfolio and thereby enhance the lifeblood of future grant making activity.
ALIGNING INVESTMENT POLICY WITH MISSION
At every private foundation, mission matters. It guides every aspect of the grant making process. Mission typically takes a backseat, however, when it comes to the investments that generate the monies to fund those grants.
After several years of working with a Foundation whose particular mission focuses on helping low-income families, Angeles was asked to guide the Board on possible ways to align the organization’s investment strategy with this mission and its associated values. This dialogue led to a series of educational sessions that delved into the burgeoning mission-related investing ("MRI") landscape and the subsequent formation of an ad hoc MRI Committee to take the lead in working with Angeles on this topic.
We partnered with the ad hoc Committee to establish priorities and achieve consensus on key objectives by surveying Board members and developing a work plan.
The process culminated in a revamped Investment Policy Statement that fully integrates the Foundation’s newly established MRI guiding principles. The Board has acknowledged that implementation will be a multi-phase process and that future MRI-related allocations will depend on the quality of the opportunity set over time. The Foundation has also made a commitment to ongoing education and reflection in order to fairly assess both financial and mission-related outcomes, as well as success in aligning the two.
OUR TEAM IS LED BY EXPERIENCED INVESTMENT PROFESSIONALS
MICHAEL A. ROSEN
Managing Partner & Chief Investment OfficerRead More
HOWARD D. PERLOW
Managing PartnerRead More
ANNA L. MCGIBBONS, CFA
Senior Managing Director & PartnerRead More
Senior Managing Director & PartnerRead More
DAVID R. BRIEF, CFA
Senior Managing DirectorRead More
AARON M. AZELTON, CFA
Managing Director & PartnerRead More
LESLIE B. KAUTZ, CFA
Senior AdvisorRead More
CHAUNICE A. WILKS, CAIA
Director, Investor Relations and MarketingRead More
DEREK KELLMAN, CFA
Investment AssociateRead More
MICHAEL J. BURLON
Managing Director, Public Markets & PartnerRead More
Managing Director, Private Markets & PartnerRead More
WILLIAM YUNG, CFA
Director, Private Markets & PartnerRead More
Associate Director, Public MarketsRead More
Senior Associate, Public MarketsRead More
Associate, Private MarketsRead More
Analyst, Public MarketsRead More
Quantitative Investment AnalystRead More
Investment AnalystRead More
STEPHEN T. SMETANA
Chief Compliance Officer & PartnerRead More
Associate Director & PartnerRead More
Compliance OfficerRead More
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