Endowment Model

The Endowment Model is an investment strategy used mainly by large institutions like university endowments. It aims to generate steady, long-term returns by diversifying investments across a wide range of assets, including stocks, bonds, real estate, private equity, and natural resources. The focus is on maintaining the purchasing power of the endowment's funds over time, supporting ongoing operational costs and future initiatives. This approach often involves accepting higher risks and less liquidity, with the belief that these strategies will lead to higher returns than traditional investments, ensuring the institution’s financial health for the future.