This is a follow-up to the previous FOA White Paper: Improving the “Endowment Model” Recipe. In that paper we summarized our investment advice as follows:

  • Make asset allocation the number one priority – always understand what is in the portfolio and keep it ideally positioned for current market expectations
  • Meaningfully reduce the reliance on equity-like market risks, with more true diversification
  • Reduce the reliance on illiquid external investments

Most of those who have provided feedback on the first paper share our concerns about the future of the endowment model. However, they generally wanted us to provide more specifics regarding the alternative approaches we would recommend.

Read entire publication: A Portfolio Asset Allocation Framework for CIOs