Read Kane Brenan's Annual CEO Letter, 2022/2023
TIFF Roundtable: ‘What Fresh Hell is This? Lessons Learned by Nonprofits During the Pandemic’

TIFF Investment Management is a mission driven OCIO delivering excellence in investment performance. More broadly, TIFF’s mission is to hold events to discuss issues and provide access to exceptional thought leaders in endowment management to help give opportunities to share ideas and concerns with industry peers that you may experience on a day-to-day basis.

Recently, TIFF hosted a roundtable breakfast and networking event featuring Judith Durkin Freyer, CFA, Chief Investment Officer Emeritus of The Board of Pensions of the Presbyterian Church (USA), Valerie Martin, CPA, Chief Financial Officer of the Connelly Foundation, and Shane McAndrew, CFA, Chief Investment Officer of Villanova University. The discussion, moderated by Kane Brenan, CEO of TIFF, took the audience back to March 2020 at the onset of COVID-19 and how their nonprofit organizations managed enterprise, investment, and governance level challenges. We were excited to be back at this in-person event held at the Union League of Philadelphia.

Judith Durkin Freyer, CFA
Judy is the Chief Investment Officer Emeritus of The Board of Pensions of the Presbyterian Church (USA). Over her 30-year tenure she grew the boards assets for approximately $2B in 1988 to close to $11B when she retired in 2020. Judy has stayed extremely busy in her retirement serving as Director, Committee Member, and Chair of numerous nonprofit endowments and foundations including the Curtis Institute of Music, William Penn Foundation, The Library Company of Philadelphia, The Ministers and Missionaries Benefit Board, among others.

Ms. Freyer received a B.A. from Manhattanville College, an M.A. in economic history from the University of Pennsylvania, and an M.B.A. from Boston University.

Valerie Martin, CPA
Valerie joined the Connelly Foundation as CFO back in 2019. Previously, Valerie spent 15 years as CFO of the John Templeton Foundation. She is an active volunteer serving as Vice Chair and former Treasurer for the Alliance for Health Equity; Board Member and Treasurer of Let Freedom Ring; Audit Committee Chair and former Board Member for the Philanthropy Network of Philadelphia; Webinar Co-Chair for the Communications Committee; and former board member for the Foundation Financial Officers Group (FFOG).

Ms. Martin received a B.S. in Accounting from the Alfred Lerner College at the University of Delaware.

Shane McAndrew, CFA
Shane is the Chief Investment Officer of Villanova University. Shane was the first individual hired at Villanova to establish their dedicated investment office. Prior to Villanova Shane spent 7 years as Director of Investments at the Ludwig Cancer Research. He led their expansion into private global markets, as well as led their research effort in both traditional asset classes as well as alternatives.

Mr. McAndrew earned a B.S. in Finance from Fordham University. He is a member of the CFA Society Philadelphia at the CFA Institute.

Please contact memberservices@tiff.org for information about future events.

Volatile markets, growing complexity underscore demand for OCIO

Increasing complexity of assets. A need to move quickly to adjust to volatile markets and uncertainty. Those are just a few of the reasons why industry experts and consultants say demand for outsourced CIO managers will only continue to grow.

According to data compiled by Pensions & Investments, OCIO assets managed for institutional investors worldwide with full or partial discretion surged to about $2.66 trillion as of March 31, up 5.4% from 2021 and 86.1% from 2017.

Volatile markets, growing complexity underscore demand for OCIO

More Investors Consider Direct Route to Owning Stakes in Private Firms

Investors have committed billions of dollars over the past several years to fund managers that buy modest stakes in private-equity firms, but some of those same investors now want to go it alone.

“Private equity is a great business to own with highly recurring revenue, high free cash-flow margin, large upside kicker in the form of [profit shares or] carried interest,” said Brendon Parry, managing director of private investments with TIFF Investment Management. The nonprofit organization, which acts as an outsourced chief investment officer for other nonprofit groups and foundations, is considering investing directly in firm-management companies.

More Investors Consider Direct Route to Owning Stakes in Private Firms

2nd Quarter 2022 CIO Commentary

The times are getting tougher

Pretty much the whole world has been wrong about how high inflation would go – including us. As investors’ views have changed, they have sold fixed income securities, pushing prices down and driving the Bloomberg Barclays US Aggregate to its worst quarter in 40 years at -5.93% in Q1 2022, followed by -4.69% in Q2. This -10.35% year-to-date loss is the worst first half of the year ever for the index. Results this poor don’t tend to occur when investors anticipate and are properly positioned for what lies ahead.

We believe the single most important investment question today is whether the Fed will – or won’t – get ahead of inflation. Typically, the Fed must balance the dual mandate of full employment and low inflation. Because inflation has been low for most of the past 40 years, the Fed has historically been able to respond quickly to economic or market events by easing rates. With inflation today above 8.5%, that calculus has changed: We expect that until inflation comes under control, the Fed will be talking tough and raising short rates, even if stock and bond prices are falling and even if the economy appears to be slowing. Until the Fed proves their mettle in taming inflation, they have lost the option of easing rates. We believe that only once the Fed has shown they can get inflation under control will they regain the ability to provide liquidity when markets require. This suggests a more difficult and volatile market backdrop in the short term, with the end of this term dictated by the path of inflation.

This is an excerpt from a longer commentary. Please Download the PDF to read the entire 2Q2022 CIO Commentary.