Yale University's 2007 Endowment Report
Regular readers of Bespoke know that we are big fans of David Swensen and the Yale Endowment. Mr. Swensen's book on personal investment is a must read, as it teaches investors about the importance of asset allocation and portfolio rebalancing. Bespoke even offers an all-ETF money management strategy that practices much of what Mr. Swensen preaches in the book.
Recently, Yale released its Endowment Update for 2007. The report can be read by clicking here. We also compared the endowment's current portfolio to that of previous years, and we highlight a chart and table of it below. As shown, there were no significant changes in the allocation of asset classes from 2006 to 2007. Private Equity was the only real increase from 16.4% to 18.7%. When comparing the current portfolio to 2002, however, we see that Domestic Equity has fallen from 15.4% to 11%, Fixed Income has fallen from 10% to 4%, and Private Equity and Real Assets (real estate, timber land, oil and gas) have increased.
There is a more up-to=date report on this subject - All-weather portfolio: how Yale and Harvard endowments invest for bad times?
http://investmentscientist.com/2008/09/21/all-weather-portfolio-investing-like-yale-harvard-endowments/
Posted by: Registered investment advisor | October 05, 2008 at 07:17 AM