The primary investment objective of the Endowment is to provide a sustainable maximum level of return that is consistent with prudent risk levels. The specific objective of the investment policy is to attain, through appreciation and income, a long-term annualized total return (net of fees and expenses) of at least 5 percent plus the rate of inflation. It is recognized that support for current operations must be consistent with the long-term growth of the Endowment. While shorter-term investment results will be monitored, policy dictates adherence to a sound long-term investment program, which balances short-term spending needs with the preservation of the real (inflation-adjusted) value of assets to achieve intergenerational equity.
Policy Target Asset Allocation
The target asset allocation for the Endowment is designed to deliver the long-term total return required to grow the endowment while minimizing changes in asset values that may disrupt funding for the programs it supports.
Puget Sound’s complete pooled endowment investment policy, including spending policy, is available on the Finance & Administration Policies page.