Investment Objectives

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The investment objectives of the Rhodes College Endowment will be to attain a total return that provides for preservation of principal and long-term growth in real terms.  Since the Endowment’s Spending Policy is based on total return, current income is not the primary consideration.

The primary investment objective of the College is to maximize the financial return over the long term within an acceptable level of risk. This measure shall be the inflation rate as measured by the Higher Education Price Index, plus a 4% premium return.

The secondary investment objective of the fund is to constrain the volatility of the total fund through a program of broad diversification.  In practice, the fund should have a standard deviation of less than 10 over rolling three and five year time frames. Central to the achievement of this goal is the concept of investing in asset classes and investment strategies that demonstrate relatively low correlation to one another. These correlations and their impact on total fund volatility will be reviewed from time to time by the Subcommittee on Investments to determine the effectiveness of the diversification program.

In effect February 14, 2008.
Vice President for Finance and Business Affairs.