Endowment Investment Policy and Objectives
The UMW Foundation serves as the private asset manager for the philanthropic gifts made in support of the University of Mary Washington.
Our Philosophy
The philosophy that underlies and is central to the rules and guidelines that guide UMW Foundation’s investment policy and the decisions of the Foundation are as follow:
- Endowment funds are, by definition, perpetual investment funds. The Foundation can afford to take a long-term view in setting the investment policy and making investment decisions.
- Taking into account the long-term nature of endowment funds, the Foundation should maintain its bias toward equity investments, which have historically produced higher long-term results.
- Diversification and asset allocation can reduce risk and increase returns.
Financial Objectives
The overall financial objectives of the Foundation’s endowment are (1) to support, in accordance with donor intent, the University of Mary Washington through student scholarships and academic programs, and (2) to preserve and grow the purchasing power of the Foundation’s endowment.
The primary investment objective of the Foundation is to obtain an average annual real total return (defined as being net of investment management fees and adjusted for inflation) of at least the effective spend and support provided to the University, measured over long time horizons. While this is the long-term objective, it is understood that there is no guarantee this objective will be met. The Portfolio will be constructed in a manner that allows for a reasonable probability of achieving this objective within prudent risk and return expectations.