Mellon Asset Management introduced a strategy designed to assist...

Mellon Asset Management introduced a strategy designed to assist foundations and endowments in setting up asset allocations to meet their requirements of paying out 5% of their rolling, average three-year assets, according to Mike Dunn, spokesman for the firm. The strategy, called Objective Driven Investing, will be similar to a liability-driven investment strategy for a defined benefit plan, said Mr. Dunn. It will create a customized asset allocation based on cash inflows and outflows, and create an investment portfolio that will seek to control risk and limit volatility. The strategy has attracted interest from foundations and endowments, Mr. Dunn said, although he declined to identify specific funds.