Foundations Try New Investment Approaches

Private foundations are rethinking their investment portfolios in the wake of the recent economic collapse, reports the Financial Times.

But some investment leaders have been taking a different approach for a long time. Nathan Fischer, chief investment officer at the Lumina Foundation, in Indianapolis, has been following an alternative investment path since 2000, and now experts say more grant makers may follow his lead.

Mr. Fischer ignores rigid asset-allocation targets and traditional benchmarks in favor of an approach that allows the foundation to jump on what seems like the smartest opportunities at the time.

Lumina’s endowment performed better than average endowments this year, dropping only 12 percent by September 30.

(Free registration is required to view this article.)