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Endowment Mission and Investment Objectives

 The overall financial objectives of the Foundation’s endowment are (1) to support, in accordance with donor intent, the institution through student scholarships and academic programs, and (2) to preserve the purchasing power of the Foundation’s endowment.

   One primary investment objective of the Foundation is to attain an average annual real total return  (defined as being net of investment management fees and adjusted for inflation) of at least 3.0% over the long term (rolling five-year periods). The second primary objective is to out-perform a blended portfolio weighted 60% MSCI All Cap World Index (ACWI) and 40% Barclays Global Bond Index (GBI). A secondary objective of the Foundation is to employ a diverse array of active management techniques to enable achievement of performance (net total return without greater risk) equal to or greater than that of the average of colleges and universities with endowments between $50 million and $100 million as published by the National Association of College and University Business Officers (NACUBO).

The spending policy is meant to ensure that the real value of the Foundation is maintained over time, which is accomplished by aligning the real spending rate with the long-term real returns from the Foundation’s investments in the capital markets. Spending from the Foundation will be up to 5.0% of the last five years’ average ending Foundation market values. As a general matter, the Committee, in conjunction with the Operations and Finance Committees, should review spending policy and practices at least annually to ensure that the policy remains in line with the financial and investment objectives of the Foundation.

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