Foundations 'spending too much' to sustain value of investments - Third Sector

Foundations 'spending too much' to sustain value of investments - Third Sector: Permanently endowed foundations might be spending too much to maintain the real value of their investments, the Charity Finance Directors’ Group investment conference heard last week.

Elroy Dimson, emeritus professor of finance at London Business School, said data he had collected with two colleagues, based on 111 years of returns from major equity markets, suggested that the real "equity premium" – the amount by which returns on stocks and shares outperform inflation – was between 3 per cent and 3.5 per cent.