Investment Pool Options

Endowment Pool: At approximately 70% equities, the Endowment Pool is designed to be long-term in nature and capital appreciation is the primary goal. This portfolio is the most diversified with the greatest allocation to return-seeking investments. The portfolio makes investments in both traditional and alternative asset classes. This Pool is for permanent endowments, where the time horizon is in perpetuity.

Moderate Pool: At approximately 50% equities, the Moderate Pool is designed to have a lower return and lower risk profile than the Endowment Pool. This portfolio holds similar investments to the Endowment Pool, except that its investments in alternative classes are all publicly traded. For individuals, this Pool is recommended for quasi-endowed funds. For agencies, this pool is recommended for reserve funds where the time horizon for use is 5 to 10 years.

Conservative Pool: At approximately 70% fixed income, preservation of capital is more important than maximizing returns for the Conservative Pool. This portfolio has the most conservative asset allocation. As with the Moderate Pool, this fund’s investments in alternative classes are all publicly traded. Charitable Remainder Trusts and Charitable Gift Annuities are invested in this Pool. For agencies, this Pool is recommended for reserve funds where the time horizon for use is 3 to 5 years.

Target Asset Allocation at 12.31.15*

Endowment Moderate Conservative
US Stocks 25% 26% 10%
International Stocks 24% 18%
Private Equity 7%
Global Fixed Income 24% 43% 90%
Real Assets 5% 3%
Diversifying Strategies   15%   10%         –
100% 100% 100%
Expected Return  1-year 7.51% 5.13% 4.31%
Standard Deviation  1-year 14.85% 9.91% 8.09%
*Actual allocation may vary from target, consistent with allowable ranges in the Investment Policy Statement.