Institutional Wealth Management for Non-Bank Portfolios and Bank Portfolios
First, we understand the organization’s situation and objectives. Then, we develop a plan to accomplish the stated goals.
At Acropolis, we begin with the fundamental belief that each organization’s starting point should be to construct a portfolio with the least amount of embedded risk required to accomplish the desired outcome.
Non-Bank Portfolio
Our non-bank portfolios (endowments, labor organizations, not-for-profits, pension and profit-sharing plans, insurance companies, etc.) typically include a diversified blend of stocks and bonds, which are invested across multiple asset classes. We approach the markets with a long-term view and manage in a low-turnover, tax-efficient manner, seeking to maximize the risk-adjusted total return while meeting required cash flow needs.
Bank Portfolio
Bank portfolio clients require a substantially different investment management process. Banks have very specific mandates and restrictions for their portfolio. The management of bank portfolios is typically based upon a spread to the funding base rather than total return. Additionally, the portfolio may incorporate goals beyond income maximization, including: regulatory liquidity, use as collateral, and/or a tool to manage the balance sheet duration gap.
We work alongside our banking clients, collaborating to meet all the Institution’s needs.
In addition to security selection and trade execution, we participate in the Asset-Liability Committee (ALCO), contribute to the creation of investment policies, and demonstrate the effect that the securities portfolio has on the bank’s balance sheet.
In all cases, Acropolis provides comprehensive reporting in an easy-to-understand format, allowing trustees to monitor the investments and execute every aspect of their fiduciary duty related to the portfolio. Regardless of the type of Institution, Acropolis can help create and execute a plan for protecting assets and achieving goals.
Institutional Wealth Management FAQs
1. What types of institutional clients does Acropolis work with?
Acropolis works with both non-bank institutions (like endowments, nonprofits, labor organizations, pension/profit-sharing plans, and insurance companies) and banks that have more specialized balance sheets and regulatory constraints.
2. How do you build an institutional portfolio?
The process starts by understanding the organization’s situation and objectives, then building a plan. The guiding principle is to construct a portfolio with the least amount of embedded risk required to accomplish the desired outcome.
3. What is your approach for non-bank portfolios like endowments or nonprofits?
Non-bank portfolios typically use a diversified mix of stocks and bonds across multiple asset classes, managed with a long-term view. We take a low-turnover approach and a focus on risk-adjusted total return while meeting required cash flow needs.
4. How is managing a bank portfolio different from a typical institutional portfolio?
Bank portfolios often have specific mandates and restrictions. Management is typically based on a spread to the funding base (not just total return), and may need to support goals like regulatory liquidity, collateral needs, and balance-sheet duration management.
5. What kind of reporting do you provide to trustees or institutional decision-makers?
Acropolis provides comprehensive reporting in an easy-to-understand format, designed to help trustees monitor investments and carry out their fiduciary responsibilities related to the portfolio.
6. Can Acropolis help us create and execute an institutional investment plan?
Yes. We help institutions create and execute a plan for protecting assets and achieving goals, regardless of institution type (non-bank or bank).