Investments

Our goal

The Long-Term Objective of the Missouri State Foundation is to achieve a total return equal to or in excess of the foundation’s financial requirements over an appropriate Time Horizon. The Investment Committee has determined that an investment Time Horizon of fifty to one hundred years is appropriate.

In addition to achieving the Spending Rate, the Policy Asset Allocation is designed to cover the administrative fee, the costs of inflation, investment management/consulting fees, related costs and any growth factor, which the Investment Committee may, from time to time, determine appropriate. The Investment Committee has selected a Policy Asset Allocation with a goal to achieve a return equal to or greater than the Long-Term Objective. The excess return over the Long-Term Objective is designed both to reduce the probability of missing the Long-Term Objective over the long-term and to provide for growth of the Foundation funds.

General investment considerations are risk, liquidity, Time Horizon, and taxes. The Investment Committee seeks to limit the overall level of risk consistent with the Policy Asset Allocation. The Endowment does not have an ongoing need for liquidity, therefore, the Endowment does not have an allocation to cash or cash equivalents. The Endowment has an infinite life.