· Endowment Conservative ETF Allocation

· Endowment Moderate ETF Allocation

· Endowment Aggressive ETF Allocation

The Endowment Target Risk ETF models are 3 ultra-diversified, multi-asset strategic asset allocation models that implement the Endowment Investment Philosophy®, a long-term strategic approach to investing pioneered by large university endowment fund managers seeking to improve longer-term risk-adjusted returns.

The Moderate Model employs a passive, index-based approach that seeks to mirror the holdings and index weightings of the Endowment Index® calculated by Nasdaq OMX®. The Index derives its asset allocation from data reported by over 700 university endowments and applies the allocation to index ETFs. The Conservative and Aggressive models are adapted from the Moderate model by dialing the fixed income, equity, and alternatives allocations to fit Aggressive and Conservative risk targets, respectively.

There are approximately 22 asset class and sub-asset class indexes held within each model. The underlying individual securities within those models include allocations to domestic, international and emerging market fixed income and equity securities, along with liquid alternatives, such as hedge funds, private equity and real assets (commodities, precious metals, real estate, infrastructure and other hard assets).

The broadly diversified structure of these passively managed strategic models makes them suitable as investment options within

defined contribution/401(k) plans. Advisers, Plan Sponsors should consider the models as an alternative or compliment to traditional balanced or target date funds.

The Endowment Risk models may also be utilized as core client holdings within an SMA/UMA. The models are available on Fidelity’s Separate Account Network.


Advisors & Plan Sponsors:

Seamlessly Add Endowment Target Risk Models As Investment Options To 401K Plans