FINRA Makes All The Classic Mistakes

The Wall Street Journal published a story last week about the investing program for the foundation of the Financial Industry Regulatory Authority (FINRA). FINRA is a nonprofit that's tasked with regulating the broker-dealer industry to ensure investors aren't getting taken advantage of. FINRA itself has a $1.6 billion investment portfolio that leaves much to be desired based on the description in the WSJ. The performance of the fund has been severely lacking since it was funded in the early-2000s with annual returns that are roughly half that of a simple 50/50 globally diversified stock/bond portfolio.