Special report – Should smaller endowments and foundations manage their own money?

The Zen of In-sourcing: Can small institutional funds resist the out-sourcers?  Should they even try?

What is the sound of one small institution managing its own money?  It’s not very loud, apparently, compared to the racket from all the people who want to do it for them.

Should smaller tax-exempt funds just give up managing their own portfolios and succumb to the siren song of outsourcing?  I think the answer is: Not necessarily.

In a previous letter I presented mini-case-histories of two smallish college endowments which recently chose to outsource.

In this special issue, I look at the other side: some small funds which have eschewed outsourcing, and are doing just fine, thank you very much.  Reports from the field suggest that resistance to outsourcing may not be futile at all.

Further below: we gather some wisdom from Jack Rich, CIO at Abilene Christian University; and, for you left-brainers, some statistics — my take on how many institutions are in this “small investor” category.

— CAS

Special Chief Investment Officer Outsourcing Edition

In this issue

Carnegie, GMO, CalPERS change horses

Leo de Bever – running $70 billion on the cheap

Ken Frier – a CIO looks ahead

Chief Investment Officers: supply and demand

I am often asked just how many chief investment officer positions there are among U.S. tax-exempt institutional funds. How much turnover is there, and how tight is the market for these top-tier professionals?

According to my research, the short answer is about 1,300 positions for full-time, professional CIOs at public, corporate and union pension plans; endowments; foundations; health systems; etc. And, I estimate the annual turnover rate at about 12 percent, or 160 openings per year.

In this issue: Everybody has a plan – until they get hit

Comings and Goings: Many many moves

Risky business at Chelsea Piers: In pursuit of the unsinkable portfolio

Recruiter’s Notebook: CIO Supply and Demand

Peter Taylor, CFO University of California: On the art of board-membership