Every market crisis is unique, and fiduciaries overseeing endowment and foundation portfolios should always question the appropriate response. Particular circumstances of each organization and the way capital markets decline differ from crisis to crisis. The specific tools available to address those stresses also vary as markets evolve.
This paper describes a general framework for addressing the priorities for action in any market crisis, with a particular focus on the circumstances around the Covid 19 calamity.
The framework is comprised of four steps:
Assess the organization’s liquidity needs
Establish or raise liquidity reserves
Understand the portfolio
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Services to be provided by Mercer Investments LLC, which is one of several, associated legal entities that provides investments services to clients as part of a global investment advisory and investment management business (collectively referred to as “Mercer”).