Notes
1 The AGB publishes a variety of useful information about the management of endowment portfolios. See, for example, John H. Biggs, The Investment Committee. The booklet is available on the AGB website, www.agb.org.
2 This portion of the chapter is adapted from Greycourt White Paper No. 51: Prudence Versus Returns (2011), available at www.Greycourt.com.
3 W. Brantley Phillips, Jr., “Standards of Prudent Investment under the Restatement (Third) of Trusts.” Washington & Lee Law Journal (Winter 1997).
4 Ibid.
5 26 Mass. 446, 465 (1830). In the Harvard College case, the trustees had invested in the stocks of manufacturing and insurance companies, which declined in value.
6 “Restatement (Third) of Trusts,” §227.
7 Ticker VGSTX. STAR is a fund of Vanguard funds with no extra fee at the fund of funds level. Except for its preposterously low non-U.S. exposure, it's a nifty option.
8 See, for example, The Future of Long-Term Investing, World Economic Forum (2011), 25.