标题: quiz- independent foundation vs. DB plan [打印本页] 作者: Howd 时间: 2011-7-11 20:07 标题: quiz- independent foundation vs. DB plan
An independent foundation, unlike a DB plan, does not need to consider the correlation between plan sponsor financial performance and the performance of the portfolio.作者: Chuckrox 时间: 2011-7-11 20:07
That would be correct..作者: skycfa 时间: 2011-7-11 20:07
True...
Foundation = No defined liability stream...
Purpose = Making grants...作者: Analyze_This 时间: 2011-7-11 20:07
very good. how about this one?
like a DB plan, the liquidity needs of an independent foundation fluctuate over time.作者: liangfeng 时间: 2011-7-11 20:07
Hum... I don't think I agree....
Foundations liquidity needs are defined by the spending rule...
It does fluctuate over time because a fixed % spending of fluctuating assets does vary but in essence, the foundations are not required by any defined liability to provide any other funds than the required 5%...
If it's purpose it to increase the amount of grant-making, then yes, the liquidity needs should increase year after year but if it's purpose is to provide a constant stream of grants year after year adjusted for inflation, then it should remain relatively constant on a real $ basis...作者: thommo77 时间: 2011-7-11 20:07
Check CFAI Volume 2 Page 395...
In the example, under Liquidity Requirements...作者: dyga 时间: 2011-7-11 20:07
i felt the same way as VinceMTL ... that foundations spending need is not of a fluctuating nature ... but got it wrong as per CFA guideline answer.
