Online Learning: Traditional Asset Classes

Course Description

Constructing and overseeing an investment portfolio is at the heart of endowment management—the nucleus around which everything revolves. If the strategic document behind the portfolio is the investment policy statement, the most fundamental tenet underpinning a wide range of decisions is asset allocation. With that comes the challenge of choosing a strategic asset mix that will generate the returns necessary to support the agreed-upon spending policy at an acceptable level of risk, all while taking into account your institution’s need for liquidity. This session will examine the traditional asset classes and what to consider when allocating to them, the benefits of adding them to your portfolio and the effects that they could have on the long-term growth of your endowment.

Identify the reasonable goals of an equity portfolio
Identify manager characteristics one should look for in the process of retaining managers and constructing portfolios
Identify the key indicators of diversification
Define market timing and identify why it is not an accepted strategy
Differentiate between the key components to focus on when assembling a portfolio with multiple equity managers