Question: A large charitable endowment fund constructed a fixed income portfolio at

A large charitable endowment fund constructed a fixed-income portfolio at the time it was established and has kept its allocation unchanged over the years. While the charitable founder asks you whether it may be possible for the fund to improve its initial allocation by restructuring, the founder emphasizes the importance of maintaining its primary investment objective. Under what conditions would such structuring be beneficial to the charitable fund? Give three reasons to support your answers, and provide an example for each reason.

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  • CreatedDecember 17, 2014
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