The goal of Elon University’s investment management policy is to earn a risk adjusted rate of rate which is consistent with the Board of Trustees’ risk profile and fiduciary responsibilities. The long term management objectives of the investment activities are to support the operations and strategic initiatives of Elon University.
The investment performance is measured against a number of appropriate indices. Our benchmark is to earn a 5.0% real rate of return over a long-term time horizon of at least 10 years. Total return includes realized and unrealized capital gains and losses as well as interest and dividend income.
Further, it is the goal of the policy to preserve the principal value of all fund assets, adjusted for the rate of inflation, so that our fund purchasing power will be maintained in perpetuity.
These objectives are consistent with the Fund’s target asset allocation and risk tolerance. Moderate levels of variability in investment returns and fund assets will be tolerated as long as this variability results in higher long-term performance commensurate with additional risk.
Spending policy for endowment funds
The endowment fund spending policies were developed with the objectives of meeting the current operating needs of Elon University, providing year-to-year budget stability and protecting the future purchasing power of the fund against the impact of inflation.
The spending policy is 4.5% of the moving 3-year average of the market value of the endowment.