Portfolio Management for Institutional Investors

Free CFA Level III: Private Wealth lesson in Portfolio Construction. 26 min read, ~3,971 words.

DB pensions: funded status drives risk capacity, so underfunded plans have lower ability to take risk and should not chase returns. Endowment return target = spending rate + costs + inflation, so real return must exceed spending plus costs to preserve purchasing power. Foundations: the 5% minimum distribution is a...