Asset Allocation Optimization

Asset allocation work aligns financial decision making at all levels with an organization’s mission and strategic direction. DWFS builds the framework and the governance around that decision making process, providing appropriate context and checks/balances along the way.

Focus areas

  • Balance Sheet
    • Asset Liability framework - Sources & Uses over Time
    • Asset Liability Committee (ALCO) design, formation and quarterly reporting
    • Net asset analysis & allocations
  • Budgeting
    • Operational
    • Programmatic
    • Department/Function
  • Revenues & expenses
    • Allocations
    • Decision making process
  • Sources and uses of funds
    • Mapping funding sources to eligible uses, so that new lending can be matched to eligible capital
    • Liquidity reporting and scenario analysis, including line of credit drawdown decisions
  • Investment process
    • Governance
    • Risk framework
    • Investment memo templates
    • Portfolio monitoring

 

Relevant DWFS client work, 2024 to present

Maine Connectivity Authority (MCA) - Quasi-governmental state broadband authority

  • Program Allocation Framework - a single view spanning over $500 million of program capital across 16+ federal, state and private funding streams, mapped to eligible uses across infrastructure programming, digital opportunity programming and operations
  • Established an effective, transparent and risk-oriented approval process, including Staff Grants Committee and specialist Sub-Committees of the Board

Four Directions Development Corporation (FDDC) - Native CDFI

  • Investment policy established, balancing operating liquidity, reserves and interest income; certificate of deposit strategy built and tested quarterly against the policy’s liquidity terms
  • Banking partner selection process and RFP designed; client selected a new primary banking partner
  • Asset liability management framework developed, and an internal Asset Liability Committee scoped for launch

Maine Outdoor Brands (MOB) - Trade association with 501(c)(6) and 501(c)(3) entities

  • Chart of accounts and grant class design supporting federal award reporting
  • Procurement policy and templates

 

Relevant prior career experience

  • Coastal Enterprises Inc. - CDFI parent
    • Responsible for the overall planning, direction, and coordination of financial activities at CEI, annual budget preparation, governance, compliance, investor relations and capital raise strategy
    • Asset Liability Management design and implementation
    • Balance Sheet optimization via a series of strategic allocation decisions
    • Financial covenant redesign and negotiation - establishing a consistent set of financial covenants for all lenders to CEI
  • Coastal Enterprises Inc. - family of entities
    • Organizing and implementing effective asset allocation decision making across multiple entities and multiple years
    • Reinvesting retained earnings to enhance impact and ensure future financial stability

 

Please contact David with any questions.