Non profit endowment/Vanguard LifeStrategy Fund

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lorneabramson
Posts: 57
Joined: Tue Jul 29, 2008 10:07 am
Location: Burlingame, California

Non profit endowment/Vanguard LifeStrategy Fund

Post by lorneabramson » Thu Jan 18, 2018 7:14 pm

Hello Fellow Bogleheads- I sit on the finance committee for a local nonprofit and we recently moved our endowment to Vanguard. Particularly given the relatively modest size of the corpus, we are solely utilizing one of Vanguard's LifeStrategy static asset allocation funds. We need to update our Investment Policy Statement to reflect this. The challenge, however, is that most template institutional IPS’ assume the organization uses a multitude of investment managers/funds (instead of a single asset allocation vehicle) and, as such, references various target asset allocation ranges, rebalancing thresholds, and other items that are moot in our case. Was curious if anyone out there is similarly affiliated with an endowment that uses a Vanguard LifeStategy fund exclusively. If so, I would love to see a copy of your organization's IPS, just a possible model/template. Please feel free to PM me. Thanks!
Last edited by lorneabramson on Thu Jan 18, 2018 10:28 pm, edited 1 time in total.

123
Posts: 3732
Joined: Fri Oct 12, 2012 3:55 pm

Re: Non profit endowment/Vanguard LifeStrategy Fund

Post by 123 » Thu Jan 18, 2018 8:31 pm

If the LifeStrategy Fund meets the requirements of your existing IPS maybe you don't need to do anything. Its the difference between buying the ingredients for a cake versus buying a cake mix. Your IPS could itemize the characteristics you found in the LifeStrategy fund, i.e. percent in equity, bonds, and international. I would use a lot of the language that's already available in the prospectus of the LifeStrategy fund, probably generalizing much of it. You could get similar detail from the prospectus of each of the component funds. Your IPS could allow the use of "packaged" solutions to achieve your investment goals, including ETFs, mutual funds, and collective investment trusts. You might want to put restrictions on the parameters of any investment "package" solutions you get involved with, i.e. investment pool of $1B or more with a documented performance history of 10 years or more. Your IPS might allow the investment committee to choose a "best fit" investment pool with a focus on reasonable costs.
The closest helping hand is at the end of your own arm.

lorneabramson
Posts: 57
Joined: Tue Jul 29, 2008 10:07 am
Location: Burlingame, California

Re: Non profit endowment/Vanguard LifeStrategy Fund

Post by lorneabramson » Thu Jan 18, 2018 10:26 pm

That’s great input, 123 - Much appreciated!

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