Table of contents
Introduction
Endowment Fund characteristics
Constraints on Endowments
History Rhymes
The US Endowment Experience
Structure of the book
Constraints on Endowments
History Rhymes
The US Endowment Experience
Structure of the book
Language of Return
Economic Return
Financial Return
'Other Income' not return
Income, capital and 'total return'
Real and nominal return
Absolute, relative and index return
Arithmetic and geometric return
Money-weighted and time-weighted return
Financial Return
'Other Income' not return
Income, capital and 'total return'
Real and nominal return
Absolute, relative and index return
Arithmetic and geometric return
Money-weighted and time-weighted return
Elements of Return
Deriving return
Risk-free return
Premium for risk
Equity Risk Premium
The eighth wonder of the world
Valuation change
Drivers of return
Scenario analysis
Risk-free return
Premium for risk
Equity Risk Premium
The eighth wonder of the world
Valuation change
Drivers of return
Scenario analysis
Understanding Risk
Description of risk
Pascal's Wager
Context and culture
Chance
Co-movement and common factors
The Greek alphabet
Confidence
Consequences
Endowment fund risk
Pascal's Wager
Context and culture
Chance
Co-movement and common factors
The Greek alphabet
Confidence
Consequences
Endowment fund risk
Spending Rules
The Endowment Dilemma
Micawber's Rule
Is valuation change spendable?
Pattern of flows
More scenario analysis
Determining an operating rule
Micawber's Rule
Is valuation change spendable?
Pattern of flows
More scenario analysis
Determining an operating rule
Assets for Strategy
Back to the future
Investment Approach
Classification of Assets
Operational Assets
Intergenerational Assets
Cash, short dated and intermediate term bonds
Long dated and high yield bonds
Inflation-Indexed Bonds
Convertible bonds; equities
Private equity; real estate; commodities; hedge funds
Investment Approach
Classification of Assets
Operational Assets
Intergenerational Assets
Cash, short dated and intermediate term bonds
Long dated and high yield bonds
Inflation-Indexed Bonds
Convertible bonds; equities
Private equity; real estate; commodities; hedge funds
Legal, Social and Ethical
Quis custodiet ipses custodies?
Tax matters
Extra-financial issues
Corporate Governance
Corporate Social Responsibility (CSR)
Socially Responsible Investment (SRI)
Program related investment
Global view
Reality check
Tax matters
Extra-financial issues
Corporate Governance
Corporate Social Responsibility (CSR)
Socially Responsible Investment (SRI)
Program related investment
Global view
Reality check
Understanding Strategy
Introduction
Resource Assessment
Defining needs
Quantifying needs
Spending Rule
Operational Assets
Intergenerational Assets
Review
Resource Assessment
Defining needs
Quantifying needs
Spending Rule
Operational Assets
Intergenerational Assets
Review
Implementing Strategy
Investment Policy Statement (IPS)
Trustees of an endowment
Investment Committee
Investment Staff
Risk tolerance and control
Operational asset management
Intergenerational asset allocation
Benchmarks and performance
Consultants
Selection of asset managers
Costs
Custody
Trustees of an endowment
Investment Committee
Investment Staff
Risk tolerance and control
Operational asset management
Intergenerational asset allocation
Benchmarks and performance
Consultants
Selection of asset managers
Costs
Custody
Synopsis
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References and reading matter
Glossary
Index