Senior living organizations not aggressive investors, Ziegler poll finds

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Senior living organizations not aggressive investors, Ziegler poll finds
Senior living organizations not aggressive investors, Ziegler poll finds

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.

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