Georgetown’s endowment is managed according to the following principles:
- Long-term time horizon: The endowment is the permanent capital of Georgetown University, providing funding to support the academic mission of the institution for current and future students. The University’s time horizon with respect to endowment assets is, therefore, of infinite duration, allowing the Investment Office to capitalize on inefficiencies arising from the market’s generally shorter-term focus.
- Diversification: Georgetown employs an asset allocation policy intended to provide a strategic mix of growth drivers and inflation and deflation hedges. The policy includes targets and ranges for asset classes and liquidity, allowing for tactical rebalancing based on market valuations and opportunities.
- Discipline: A disciplined governance and investment process helps the Investment Office make and stick with investment decisions that are at times contrarian and unconventional. Disciplined rebalancing offers the potential to add value over the long-term strategic policy target portfolio. Close monitoring and adherence to liquidity constraints ensures flexibility both to pursue investment opportunities and to respond to potential needs of the university.
- Risk management: Understanding the risk profile of the endowment portfolio lies at the center of the Investment Office’s work and is an ongoing activity. The Investment Office monitors the endowment portfolio for market volatility and exposure, liquidity, and manager risk.