Investment Policy for Non-Endowed Funds
To better align non-endowed funds with related grantmaking objectives, the board has established four separate pools in which non-endowed funds may be invested: cash, capital preservation pool, income-oriented pool, and growth-oriented pool.
- Cash: Funds are invested in a money market account.
- Capital preservation pool: The purpose is to provide a high level of liquidity for the foundation to manage appropriately. The primary objective is to preserve principal; therefore, the majority of assets are invested in very safe and liquid instruments.
- Income-oriented pool: The objective is to balance return with a moderate level of risk. The investment horizon is expected to be one to five years, and therefore accepts some risk to gain higher returns. The performance objective is to earn a rate that exceeds a benchmark consisting of 67% fixed income and 33% equity.
- Growth-oriented pool: The purpose is to mimic the endowed pool as closely as possible, with the intention of maintaining assets in excess of five years. Donor intentions are long-term and willing to accept volatility associated with a fully diversified portfolio consisting of both equities and fixed income. The performance objective is to earn a rate that exceeds a benchmark consisting of 26% fixed income, 70% equity, and 4% alternatives.