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Five Reasons Endowments Must Stick With their Long Term Investment Strategy Despite Recent Underperformance
The below excerpt was taken from an article written by Prateek Mehrotra, MBA, CFA®, CAIA® which was posted on GuruFocus.com website on Friday 8/2/2014. The portfolio managers atop the country’s most respected university endowments failed to make the honor roll during the current bull market despite their top salaries and genius IQs. Harvard University’s $32.7 billion endowment returned an average of 10.5% annually over the past three years through... -
Target Date Funds aren’t right for every 401(k)
A recent article that appeared on CNBC.com titled “Don’t let your 401(k) retire before you do” highlighted some of the reasons that TDFs may not be a good fit for all plan participants, including: There is not uniformity among TDFs as to their asset mix, which can change unexpectedly Individual investors may have unique circumstances that may not fit the “one size fits all” approach Know what the fund managers... -
Use of Liquid Alts in Defined Contribution Plans is on the Rise
ETF Model SolutionTM’s Collective Investment Fund was mentioned today in an article on DailyAlts.com. “Last week, the Alta Trust Company and ETF Model SolutionsTM announced the launch of the Endowment CIF (Collective Investment Fund), which is designed to emulate the strategies of endowments, pension funds, and defined benefit plans. But instead of investing in illiquid alternatives like limited partnerships and private placements, the Endowment CIF will use alternative ETFs... -
New Collective Investment Fund Brings Endowment Investment PhilosophyTM/Liquid Alternatives to Defined Contribution Plans
APPLETON, WIS. — Alta Trust Company has partnered with ETF Model SolutionsTM, LLC. to launch the Endowment Collective Fund (CUSIP: 26923F105). The Endowment Collective Investment Fund (CIF) seeks to improve risk-adjusted returns of traditional two-dimensional portfolios of stocks and bonds by adding alternative investments, such as private equity, hedge strategies and real assets to create a 3-dimensional portfolio. Managers of university endowments, pension, and defined benefit plans have historically utilized lower-correlated alternative... -
More Data Shows That Few Active Mutual Fund Managers Beat the Market
A recent article summarized data from a paper in the Financial Analysts Journal on the career paths of mutual fund managers. Not surprisingly it confirms most mutual fund managers of any tenure “generally do not outperform the market or their style benchmarks and do not display consistently superior performance.” “Even long-term managers show no ability to beat the market on a risk-adjusted basis.” Daniel Fisher, the author of the...