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Washington State University
 

Endowment Investment Strategy

The WSU Foundation consolidates all funds available for long-term investment in its Endowment Fund, with the exception of funds restricted by law or by special donor limitations. This fund is the investment pool for approximately 2,472 privately endowed funds supporting a wide variety of education, research, and service programs across Washington State University.

The WSU Foundation’s Endowment Fund actual asset allocation as of June 30, 2020 is as follows:

International Equity - 19.1%; US Equity - 22.4%; Absolute Return Equity - 9%; Real Assets - 14.5%; Private equity - 16.3%; Fixed Income & Cash - 8.7%

The investment objectives of the Washington State University Foundation’s Endowment Fund reflect its long-term nature. It is recognized that the desire to grow endowment gifts and to produce a large, stable, and predictable payout stream involves tradeoffs that must be balanced in establishing the investment and spending policies. Considerations that shape the Endowment’s objectives include:

  • Producing a relatively predictable and stable payout stream to WSU’s programs that are supported by endowment funds;
  • Increasing the inflation-adjusted value of the endowment in the long term, while assuming only moderate risk;
  • Balancing the support of present and future generations of students and faculty.

Donors may designate an endowed gift to create a new fund or contribute to an existing fund. These funds are held in perpetuity by WSU Foundation and are invested with other funds that comprise the WSU Foundation’s Endowment to promote growth over the long term and to protect against inflation. A portion of each fund’s value – currently 4.0% of a three-year rolling average – is made available each year to support the designated program.

 

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Washington State University Foundation