Most senior living organizations have formal investment policies, and most of those policies favor a balanced mix of investments or lower-risk investments rather than aggressive approach to investment, according to a new poll of chief financial officers conducted by specialty banking firm Ziegler.
Ninety-eight percent of the 165 CFOs responding to Ziegler’s CFO Hotline poll in July said their companies have formal investment policies. The policies generally are overseen by a board finance committee (41.2%), a formal investment committee (30.3%) or the board as a whole (16.4%), they said. The executive management team oversees the policy, said 5.5% of respondents.
The size of organizations’ investment portfolios ranged from less than $2 million to more than $1 billion at the end of March, according to Ziegler. The median total dollar amount in an organization’s portfolio typically is about 71% of the annual revenue for the organization, the firm said.
Almost two-thirds (62.4%) of CFOs said their organizations prefer a balanced mix of investments, with an additional 27.3% indicating that their companies favor a mix of investments with an emphasis on low risk and 3.6% answering that their organizations prefer investments that have the lowest degree of risk. Only 6.7% of CFOs said their companies prefer an aggressive mix of investments.