The Endowment Model: Striking the Balance Between Simple & Complex

June 26, 2014 / by NEPC

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The discussion among many small and mid-sized Endowment and Foundation investment committees of late is about whether the Endowment Model is worth all the trouble.  This debate rolls on as a simple “60% equity/40% fixed income” portfolio continues to post strong returns.  Accordingly, many Endowments and Foundations are still searching for the most appropriate structure.  For many small and mid-sized Endowments, the answer likely lies somewhere in between the two extremes, and should be driven largely by the combination of each organization’s return goals, liquidity needs, dependence on spending to support operations, access to debt markets and appetite for complexity.

Topics: Endowments & Foundations


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