Managing wealth for endowments and foundations. This requires balancing long-term capital growth with consistent annual payouts. Success depends on fiduciary oversight, diversification and clear spending rules to protect the funds value from inflation.
• Investment Policy Statement (IPS): Write formal rules detailing your appetite for risk, financial goals, and target allocation mix.
• Sustainable Spending Policy: Limit annual payouts to a safe range (typically 3%-5%) based on a multi-year rolling average.
• Fiduciary Duty: Ensure board members act with care and loyalty while avoiding any conflicts of interest.
