Toward an Optimal Asset Allocation for Charitable Remainder Trusts | Zendy

Delorme Luke F. | Zendy; St. Peter David F. | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Premium

Toward an Optimal Asset Allocation for Charitable Remainder Trusts

Author(s) -

Delorme Luke F.,

St. Peter David F.

Publication year - 2016

Publication title -

nonprofit management and leadership

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.844

H-Index - 54

eISSN - 1542-7854

pISSN - 1048-6682

DOI - 10.1002/nml.21227

Subject(s) - remainder , asset allocation , asset (computer security) , actuarial science , investment (military) , economics , business , financial economics , econometrics , finance , computer science , political science , portfolio , arithmetic , mathematics , computer security , politics , law

Economic theory, relevant research, and a Monte Carlo model are used to develop investment guidelines for charitable remainder unitrusts ( CRUTs ). Investment for CRUTs should involve a significant share of equities, with as much as 70 percent allocated to equities for long‐term CRUTs . Adjusting allocations as payout beneficiaries get older is unnecessary given the nature of CRUTs , donors, and simulated outcomes. The authors propose that a fixed asset allocation be used instead of one that changes over time and that CRUTs with higher payouts should use a more aggressive asset allocation (more equities).

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here

Accelerating Research