Balancing Structure and Flexibility


June 21, 2018

As fiduciaries of endowments and private foundations, many of you are faced with a monumental challenge. Confronted with inflationary pressures, uncertain returns, and a broad array of investment choices, developing a strategy that is structured for today’s investment environment while still focused on fulfilling your long-term mission is a formidable task.

In our white paper, “Balancing Structure and Flexibility: Building a Durable Strategic Allocation for Endowments and Foundations,” we discuss the issues that confront fiduciaries, and provide strategies on how to tackle them and build a durable allocation plan for long-term assets. A strategic allocation policy sets a long-range plan, but it should also account for various possible market conditions. It needs to understand withdrawal or distribution needs, the expected life of a fund, and the ability or tolerance to weather a sustained drawdown. A daunting task, made even more challenging by the lower return environment expected over the next 10 years. The time to address these challenges is now.