Investment Objectives
The Endowment's primary investment objective is to provide a sustainable maximum level of return consistent with prudent risk levels. The investment policy's specific objective 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 to preserve the real (inflation-adjusted) value of assets to achieve intergenerational equity.
Policy Target Asset Allocation
The Endowment's target asset allocation 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.
![Endowment Target Asset Allocation](/sites/default/files/styles/wysiwyg_full_body_width/public/2023-10/Asset%20Allocation.png?itok=BjuLRClB)
Puget Sound’s complete pooled endowment investment policy, including spending policy, is available on the Finance & Administration Policies page.