In the later phase of June 2009, management at The Investment Fund for Foundations (TIFF) was considering enlarging the footprint of the TIFF Diversified Fund (TDF), the first truly comprehensive endowment management vehicle offered under the TIFF banner ad. The recent substantial capital losses endured by most endowments, including those of Harvard and Yale, had inspired some to challenge the two essential premises of the donation investment model-that investors get rewarded for bearing illiquidity, and that a diversified blend of asset programs and strategies provides significant protection against capital losses under virtually all market conditions.
In spite of this question, the investment professionals at TIFF were persuaded that this model remained viable as a means of producing exceptional long term returns, and that TDF was a vehicle that supplied potential clients and TIFF's current access to this model. But they were not unaware that they had have to increase their efforts to reflect on whether to change the present structure of TDF, and also to educate their clients on the advantages of this all-inclusive way of investing, particularly regarding its liquidity provisions.
The Investment Fund for Foundations (TIFF) in 2009 case study solution
PUBLICATION DATE: December 24, 2009 PRODUCT #: 210008-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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