Endowment Fund Management Policy
The target allocation for the total assets of the Endowment is 75% Equity (with sub-allocations of 40% US large cap equities, 10% US SMID-cap equities, and 25% international equities) and 25% Fixed Income (including preferred equity and cash).
There will be an allowable band of 10% +/- for manager discretion for tactile tilts to maximize relative strength among asset classes and to minimize trading and turnover. This indicates the maximum exposure to equities is 85% and the minimum exposure is 65%. Cash between 0.5% and 3% may be held in order to retain liquidity, but higher positions may be held if market conditions warrant.
Endowment Fund Spending PolicY
In recognition of the need to support operations through the use of the Endowment, up to 7% of the average of prior twelve quarter-end market values (ending March 31 of the current year) may be so expended.
The Board of Directors pre-approves this expenditure via the annual approval of the operating budget. Final approval of this expenditure will be made by the Finance Committee before fiscal year end and cannot exceed the dollar amount pre-approved by the Board.
Any additional distributions may also be made but must have additional Board of Directors approval. Likewise if (a) the market value of the fund goes below principal and (b) all accumulated earnings in temporarily restricted have been depleted, the Vivo has the authority to continue to prudently use funds from the Endowment to support operations after consideration of the seven factors outlined in UPMIFA (duration and preservation of the fund, general economic conditions, other resources of the organization, the expected total return from income, etc.).
Updated: October 2026