Investment Policy
The investment strategy to be followed in pursuit of the achievement of the Endowment Fund’s investment objectives is determined by the Investment Advisory Firm. This shall be done by using their proprietary asset allocation model.
Model Allocation Target
Asset Class / Strategy
Approximate Allocation
Growth Oriented Strategies:
U.S. Equities
17.5%
International Equities
12.5%
Global Hedged Equity
15.0%
Private Equity/Venture Capital
15.0%
Emerging Markets Equity
7.5%
Low Volatility Strategies:
U.S. Fixed Income
7.5%
Absolute Return Strategies
15.0%
Private Market Real
10.0%
The Investment Advisory firm (Outsourced CIO) may modify their model allocation from time to time at their discretion. The Investment Advisory Firm will keep the Subcommittee and Staff apprised of variances from the model allocation targets and informed of anticipated changes in the model.
It is also understood that, initially, the Private Equity and Private Real Estate allocations may not be funded to the target levels. The investment strategy of these alternative investments is to fund the allocation when opportunities are deemed appropriate. The reason for including alternative investment strategies in the approved asset allocation is to increase the overall diversification of the Endowment and reduce the volatility of the total portfolio due to the relatively low correlation between the non-traditional strategies and traditional strategies (U.S. Stocks, International Stocks, and U.S. Bonds).
Printed from: https://handbook.rhodes.edu/college-handbook/administrative-policies/endowment-investment-policies/investment-policy