Once upon a time...
A historical overview of the development of asset allocation for nonprofit organizations
September 2012
In one sense, the development of asset allocation practices among nonprofit organizations is a story of the gradual loosening of regulatory shackles. Another way to tell of the evolution in practices is to look at the development of asset allocation theory and how it has been applied in practice by institutional investors across the years. This paper tells the story of the historical development of asset allocation theory. It tells us how we got to where we are, suggests a sense of order in today’s world and reminds us that best practice will continue to advance and evolve.
