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Endowment Fund Management

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Bala Arshanapalli, Edmond D´Ouville, and William Nelson, "A New Endowment Distribution Plan: How to Insure Current Spending While Growing the Fund Corpus," Journal of Wealth Management, Spring 2004, pp. 24-28 (91kb). An interesting idea.  They suggest that endowments ensure the current funding continues uninterrupted by splitting the endowment and buying a long-term commercial annuity with a portion, while investing the other portion in stocks for growth.

James P. Garland, "A Market Yield Spending Rule for Endowments and Trusts," Financial Analysts Journal, July August 1989, pp. 50-60. This paper proposes a rule for calculating how much to spend annually from an endowment.

Catherine D. Gordon, "Investment Committees: Vanguard's View of Best Practices," The Vanguard Group, June 2004. A good discussion of best practices in investment committees.

Robert C. Merton, "Optimal Investment Strategies for University Endowment Funds," NBER Working Paper # 3820, August 1991 (1.1mb).

Moshe A. Milevsky, "A New Perspective on Endowments," IFID Working Paper, March 10 2003. An excellent article discussing spending policies for endowments.

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