The success of the highly-diversified “endowment model” of investing – characterized by a highly-diversified investment portfolio with an equity bias and a high degree of acceptance (or even pursuit) of less-liquid and illiquid investment strategies – has been charted by many observers and continues to be robustly supported by some of its leading practitioners. Yet the model, while highly relevant and powerful as a framework for the management of long-term nonprofit investment pools, is likely nevertheless to deliver future results that are subdued relative to those obtained in the past. This is not necessarily a result of faults in the endowment model itself but stems in large degree from the structural secular conditions that have come to prevail in global capital markets. In this sense, the endowment model is not, as some would argue, broken; rather, it remains a very effective tool for optimizing endowment returns. It is likely, however, to deliver different results than in the past due not to any faults in the model itself but rather to the objective circumstances in which it will be employed.Join William Jarvis and Michael Strauss of Bank of America in a discussion of the governance challenges that boards and investment committees of endowed nonprofits are facing in this environment and a review of the tools they can use to meet those challenges.
William Jarvis, Managing Director, Bank of America
Michael Strauss, Managing Director and Senior Institutional Portfolio Strategist, Bank of America
This webinar is brought to you by AGB partner Bank of America: