Fiducient Advisors Investment Policies, Practices, and Performance

• Fiscal Year 2022 (as evidenced by data from the Orchestra Statistical Report saw many orchestras experience investment losses, leading to negative changes in overall net assets. The Cultural Institutions’ Investment Policies, Practices, and Performance report contextualizes this trend, revealing widespread losses across the arts and culture sector due to double-digit negative returns for both stocks and bonds, an unusual occurrence.
• In Fiscal Year 2022, arts and culture organizations that prioritized cash and cash equivalents in their investment allocations demonstrated better performance compared to those with a higher emphasis on equities. Nevertheless, over the long term, portfolios with more substantial allocations to equities and other risk assets tended to experience generally favorable returns.
• In general, smaller investment pools tend to allocate a larger portion to domestic equities and bonds, whereas larger investment pools lean towards alternative investments such as private equity and hedge funds.
• Arts and culture organizations are dedicated to expanding investment pools to support their missions, emphasizing ethical practices aligned with core values. The report underscores a commitment to best practices, effective risk management, and judicious cost control. Larger budget organizations show a growing interest in socially conscious investing, but uncertainty persists regarding optimal strategies for implementation.
• Across the arts and culture sector (as in the orchestra field), reliance on investment income increases with organizational budget size.

Download the full report to gain access to:

• Current insights into prevalent investment practices among cultural institutions
• Strategies for enhancing financial stewardship, especially in uncertain times
• In-depth discussions and guidance on best practices in investment management, both for the present and the future

Note: The report cannot be considered fully representative of the arts and culture sectors listed, since many United States museums, symphony orchestras and other arts and culture organizations have no endowment or investment activity, and were therefore not included in the study.