RT Journal Article
SR Electronic
T1 Behavioral Asset Allocation for Foundations and Endowments
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 38
OP 50
DO 10.3905/jwm.2006.661431
VO 9
IS 3
A1 Steve P. Fraser
A1 William W. Jennings
YR 2006
UL https://pm-research.com/content/9/3/38.abstract
AB The behavioral asset allocation framework developed for individual investors can help foundation and endowment trustees become more comfortable with “uncomfortable” asset classes that would help overall portfolio efficiency. Eleemosynary investment, particularly at smaller charities, is typified by convention and conservatism. The behavioral asset allocation approach helps overcome this tendency by decomposing the total portfolio into timeline-based sub-portfolios that look to secure the nonprofit's payouts for many years and isolates the “uncomfortable” assets in the longest-term sub-portfolios. We advance and apply the behavioral asset allocation framework in a new context, yet one relevant for high-net-worth individuals with charitable intent.TOPICS: Foundations & endowments, wealth management, in portfolio management, portfolio construction