Endowment & Foundation Spending in an Integrated Asset/Liability Framework

A re-issue of our paper released in August with the 2011 5-7 year Capital Market Expectations.

The recent market environment has led Endowment and Foundation Trustees to re-evaluate the key aspects of their investment oversight.  For most Trustees, the challenge is to balance the two competing financial objectives of an institution: meeting current spending needs while maintaining the long term “real” value of the assets.  This paper focuses on ways to create an ideal spending policy.