On the 2002 endowment IPS question it says the foundation has: average ability above average willingness “taking both ability and willingness into consideration, the endowment’s risk tolerance is best characterized as above average” I thought for institutions you would look primarily at ability. In general, don’t you usually honor the more conservative of the 2?
Hmmm… I would agree with you. Maybe because its an endowment (not a pension plan) and assumably it doesnt have any legally mandated liquidity needs and/or spending levels, you can use an average of willingness and ability???
endowment is long term shuns, low liquidity needs bros
I think for institutions, the willingness doesn’t matter. You should look at only ability when it comes to the institutions. BTW, it’s good to see you again, BradleyZ!