Advisor-Managed Portfolios (AMPs)
Advisor-Managed Portfolios are the cornerstone of DAF asset management, giving you direct control over a portion of your clients’ charitable assets through your existing platform and processes.Automatic AMP Setup
New advisor-managed DAFs are automatically configured with:- 100% AMP Allocation: Assets initially allocated entirely to your management
- Shell Account Creation: Dedicated accounts at your existing broker-dealer
- Platform Integration: Seamless management through your current trading system
- Custom Fee Structure: Ability to configure your own management fees within the AMP setup
AMP Management Capabilities
Full Investment Control- Asset Selection: Complete flexibility in investment choices
- Alternative Investments: Access to private markets, real estate, and specialized strategies
- Rebalancing: Manage portfolio rebalancing on your timeline
- Tax Management: Coordinate tax-loss harvesting and optimization strategies
- Existing Platform: Use your current trading and portfolio management systems
- Client Reporting: Integrate with your standard client reporting processes
- Risk Management: Apply your established risk management frameworks
- Compliance: Maintain consistency with your firm’s investment policies
Requesting Additional AMPs
Clients can request AMPs through:- Client Dashboard: “Request Advisor-Managed Portfolio” button on fund page
- Direct Contact: Advisor email request to admin@endaoment.org
- Onboarding Process: Automatic setup during initial DAF creation
Portfolio Reporting Requirements
Monthly reporting ensures proper oversight and regulatory compliance for all Advisor-Managed Portfolios.Monthly Statement Submission
Submission Requirements- Frequency: Monthly statements required for all AMPs
- Destination: Send to advisors@endaoment.org
- Timeline: Submit by the 15th of each month for the previous month
- Alternative: Upload via integrated client portal if available
- Current market value of all holdings
- Individual position details and quantities
- Cash balances in shell accounts
- Any corporate actions or position changes
- Performance attribution if available
Valuation Methods
Traditional Securities- Market Value: Use current market prices for publicly traded securities
- Pricing Source: Standard pricing services (Bloomberg, Reuters, etc.)
- Timing: End-of-month valuations preferred
- Fair Market Value: Mark to latest available fair market value
- Cost Basis: Use cost basis if FMV not available
- Documentation: Provide valuation source and methodology
- Updates: Report valuation changes when new information becomes available
Reporting Best Practices
Documentation Standards- Use consistent formatting across all statements
- Include all required data points for each portfolio
- Maintain clear position identification (CUSIP, ticker symbols)
- Provide context for large position movements
- Flag any unusual activity or significant changes
- Submit reports by the 15th to ensure timely processing
- Notify Endaoment of any expected delays
- Coordinate with month-end closing procedures
- Plan for holiday schedule adjustments
Cash Management for Grant Distributions
Effective cash management ensures sufficient liquidity for grant distributions while maintaining optimal investment allocation.Grant Liquidation Process
Advance Planning- Grant Pipeline: Monitor client’s planned charitable distributions
- Cash Positioning: Maintain appropriate cash levels for expected grants
- Liquidation Timing: Coordinate asset sales with grant timing needs
- Tax Considerations: Optimize liquidation timing for tax efficiency
- Grant Requests: Receive advance notice of upcoming grant distributions
- Liquidity Assessment: Evaluate current cash position and liquidation needs
- Asset Selection: Choose optimal positions for liquidation to raise cash
- Settlement Timing: Ensure cash availability aligns with grant execution
Cash Management Strategies
Conservative Approach- Higher Cash Allocation: Maintain 10-15% in money market or cash equivalent
- Immediate Availability: Grants can be processed without asset liquidation
- Lower Returns: Trade-off between liquidity and investment growth
- Lower Cash Allocation: Maintain 2-5% cash for immediate needs
- Higher Investment: Maximize assets in growth investments
- Liquidation Coordination: Require advance notice for large grants
- Seasonal Adjustments: Increase cash during high-giving periods
- Client Communication: Coordinate with client’s giving calendar and tax planning
- Market Timing: Consider market conditions when planning liquidations
Allocation Strategies Across Portfolio Types
While you have full control over AMPs, you can also suggest target allocation changes across Endaoment-managed portfolios to complement your management approach.Available Portfolio Categories
Your Advisor-Managed Portfolio- Assets you manage directly on your existing platform
- Held in shell accounts at your broker-dealer
- Full flexibility for alternative investments and private markets
- Your custom fee structure applies
- Index funds, money markets, and fixed income options
- Minimum investment: $500 per portfolio
- Variable annual fees (0.50% minimum)
- Professional management by Endaoment’s team
- Bitcoin, Ethereum, tokens, over 1000+ tokens available
- 1.00% annual fee
- Maximum 30% of total platform assets per investment policy
- Values-aligned investments with social/environmental benefits
- Board-approved options focused on positive societal impact
- Combines financial returns with charitable values alignment
Target Allocation Suggestion Workflow
Step 1: Access Fund Allocation- Navigate to client’s DAF from your Endaoment dashboard
- Locate “Fund Allocation” section under “Add Assets” & “Make Grant” buttons
- Click “Edit Allocation” to open allocation editor
- Search & Select: Browse available portfolio options
- Add Portfolios: Click ”+” button next to desired portfolios
- Set Target Percentages: Adjust allocation for each selected portfolio
- Verify Total: Ensure all percentages add up to 100%
- Review proposed target allocation strategy
- Click “Save Changes” to submit recommendations to client
- Client Approval Required: Suggestions queued for client review and approval
Key Collaboration Permissions
What You Control Independently:- AMP Management: Full control over Advisor-Managed Portfolio investments
- Asset Selection: Complete investment decision-making within AMPs
- Rebalancing: Manage AMP rebalancing on your timeline
- Target Allocation Changes: Suggestions for Endaoment-managed portfolio allocations
- Portfolio Mix Adjustments: Addition or removal of portfolio types
- Percentage Changes: Adjustments to any non-AMP portfolio allocations
- Weekly Rebalancing: Approved changes implemented during Endaoment’s ~weekly rebalancing cycle
- Professional Execution: Endaoment’s team handles all trades for managed portfolios
- Coordination: Work within Endaoment’s infrastructure policies and timing
Strategic Allocation Considerations
Risk Management- Diversification: Balance AMP concentration with Endaoment-managed diversification
- Correlation: Consider correlation between AMP strategy and suggested portfolios
- Capacity Limits: Respect platform-wide portfolio caps for compliance
- Risk Tolerance: Align allocation with client’s overall risk profile
- Time Horizon: Consider client’s expected giving timeline and growth needs
- Values Alignment: Incorporate impact investing based on client preferences
- Rebalancing Coordination: Work with weekly rebalancing cycles for optimal execution
- Minimum Investments: Respect $500 minimum for individual portfolio allocations
- Fee Optimization: Balance management fees across different portfolio types
Working with Endaoment’s Infrastructure
Weekly Rebalancing Process
- Timing: Endaoment conducts ~weekly portfolio rebalancing
- Implementation: Approved allocation changes executed during rebalancing cycles
- Coordination: Align your recommendations with this systematic approach
- Optimization: Endaoment determines optimal timing and methods for portfolio transitions
Investment Policy Compliance
Broad Investment Guidelines- Advisory Privileges: As fund advisor, you have advisory privileges over investment recommendations, consistent with Endaoment policies
- Default IPS: All AMPs adopt Endaoment’s broad Investment Policy and default Investment Policy Statement for Advisor-Managed Portfolios
- Policy Framework: Guidelines accommodate a wide range of investment strategies while maintaining charitable purpose alignment
- Standard AMPs: Default Investment Policy Statement allows most traditional and alternative investment strategies
- Custom Strategies: Any deviation from the default IPS requires Investment Committee or Board approval before implementation
- Private Markets: Blended capital or specialized private investment strategies must receive pre-approval
- Timeline: Allow adequate time for committee review during the approval process
- Portfolio Caps: Respect protocol-wide limits on asset deployment for compliance
- Diversification: Balance concentration risk across portfolio types and asset classes
- Regulatory Requirements: Maintain compliance with 501(c)(3) and advisor custody regulations
Risk Management & Exit Rights
Crisis Response Capabilities- Exit Authority: Endaoment retains the right to exit any portfolio position at any time for safety or risk management reasons
- Emergency Action: Crisis response procedures prioritize asset protection and regulatory compliance
- Communication: Immediate notification to advisors of any emergency position changes
- Documentation: All emergency actions documented with clear reasoning and timeline
- Position Monitoring: Regular review of portfolio positions for risk management
- Market Conditions: Heightened oversight during volatile market periods
- Compliance Review: Ongoing assessment of positions for regulatory compliance
- Coordination: Work collaboratively with advisors on risk management decisions when time permits
Private Market Investment Requirements
Prohibited Persons Compliance- Questionnaire Required: DAFs seeking private market exposure must maintain a completed Prohibited Persons/Entities Questionnaire on file
- Annual Updates: Questionnaire must be refreshed annually to support compliance
- Anti-Prohibited Benefit: Ensures compliance with IRS regulations prohibiting excess benefit transactions
- UBIT Compliance: Supports Unrelated Business Income Tax compliance for private investments
- Documentation: Maintain current Prohibited Persons documentation before private market deployment
- Review Process: Enhanced due diligence for private investment opportunities
- Ongoing Monitoring: Regular compliance review for private market positions
- Exit Planning: Clear procedures for private investment liquidation if needed
Professional Support
- Technical Assistance: Support available for allocation planning and implementation
- Market Insights: Coordination with Endaoment’s investment team for market perspectives
- Compliance Guidance: Ongoing support for regulatory and operational questions