KU Endowment’s goal is to provide a stable stream of support for the university from one generation to the next. In keeping with our long-term perspective, we invest our endowed, or permanent, funds with the intent that they grow steadily over time.
Many donors establish endowed funds, which may be named for the donor or someone the donor wishes to honor. KU Endowment places these funds in its Long-term Investment Program, where they are collectively invested in a professionally managed, diversified portfolio emphasizing equity securities.
To find out more about our long-term investments, see our Target Asset Allocation
, our investment Performance Objective
and our publication Investing in KU
The amount of university support provided by endowed funds each year is determined according to KU Endowment’s spending policy.
The spending policy determines how much may be spent annually from each participating fund to support its intended purpose. KU Endowment has adopted a Constant Growth spending policy, effective February 2013. Under this policy, distributions in any given year are equal to those in the prior year, plus an adjustment for inflation.
To ensure we’re not spending too much or too little in any given year, the new policy is subject to a 4.5 percent “floor” and a 6.5 percent “cap” of the trailing four-quarter average market value.
Spending will continue to be allocated in proportion to the target of 5.5 percent, with:
- 4.6 percent allocated to participating funds for current expenditure
- 0.9 percent allocated to KU Endowment as an administrative fee
KU Endowment’s investment and spending guidelines are overseen by the Investment Committee, one of several standing committees of the KU Endowment Board of Trustees.
For more information about our investments, please contact Jeff Davis
, senior vice president for investment and treasurer, or Stacy Nuss
, assistant treasurer, at 785.832.7400 or toll free at 800.444.4201.