Mary Beth Lato

Liquidity provides a crucial limitation in the investment management of not-for-profit portfolios. We use an illustrative example to provide a simple high-level framework that combines top-down asset allocation and historical liquidity stress tests with bottom-up cash flow modelling to help provide guidance on sizing allocation to illiquid assets in investor portfolios.

In this paper, we the impact that the stock-bond correlation can have on an investment portfolio, and discuss a solution using a combination of alternative diversifier strategies that can improve portfolio performance during periods of heighted equity volatility.

In this paper, we unpack the spending policy by breaking it into two components: spending rate and spending methodology. We discuss how these components impact the sustainability of the asset pool and the balance between the interests of current and future beneficiaries.