RT Journal Article
SR Electronic
T1 Long-Duration Trusts and Endowments
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 44
OP 54
DO 10.3905/jpm.2005.500352
VO 31
IS 3
A1 James P. Garland
YR 2005
UL https://pm-research.com/content/31/3/44.abstract
AB Overseers of endowments and long–duration trusts should focus on how they can use cash from these funds to serve the owners' or beneficiaries' current spending needs without a negative impact on future withdrawals to meet future spending needs. As the ultimate objective of all investment portfolios is to provide spendable cash over some time frame particular to the owner's or beneficiary's circumstances, paying attention to the fecundity, or the fruitfulness, of long–duration portfolios would seem to make good sense. Cash withdrawals, effectively the fruit of a portfolio, can come from dividends, interest, portfolio asset sales, or some combination of all three. A focus on the fecundity of a typical endowment or long–duration trust fund leads to several useful insights.