What is an endowment investment?
The investment of the subsidy concerns the investment of institutions such as universities, universities, hospitals and libraries. This type of investment is generally made possible by donors who donate funds or other assets called foundations, institutions. The Foundation's investment is essentially governed by specific policies that deal with problems, such as various assets in which the funds should be assigned and how investment profits will be spent. The investment of the foundation may be limited by a donor that determines certain conditions for the provision of funds, or may be unlimited when the donor allows discretion of the beneficiary of the funds. In addition, there are different types of foundations such as permanent, quasi and term foundations.
In the introduction, the investment of the Foundation can be established as a foundation, trust or the public. Institutions that have been equipped with funds for investment for the purpose of financing parts of their activities. For example, for universities or universities, investment Foundation may be a source of incomeFor scholarships awarded to specific students, among other things.
Permanent foundations, also known as real foundations, require that the donated funds be invested forever and can only be spent from investment income. The Foundation's quasi are usually set up with resources from external donors and the institutions themselves. These types are determined for specific purposes and income created from their investment can only be used to operate the purposes. Finally, the deadlines are similar to permanent, except that they have an expiry date where all or part of the funds can be spent.
In addition, donors have a big word in terms of how their foundation should be invested. The recipients of institutions, hoverver, can also set the minimum to qualify as permanent, quasi or term foundation. For example, the university may set at least $ 10,000 in the US (USD) to set up permanent or actual ondace.
In addition, endowment plans and investments are supervised mainly of the Board of Directors and/or professional fund managers hired for this task. The team that manages the foundation must follow the prescribed policies and follow a strict plan. For example, the awarded weight of the Endowment Portfolio must be maintained proportionally according to the investment objectives of the institution. For example, the proportional weight of a particular foundation portfolio may be as follows: 25% of bonds, 35% of US shares, 20% of European shares, 10% of expensive metals and 10% of the market stock.