Endowments and Foundations IPS

Investment Management and Portfolio Theory · 4:45

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Lyrics

[Verse 1]
There's a foundation with a mission true
Help the world with what they do
But they need money year by year
How to spend and save what's dear
Time horizon stretches long
Forever funding must stay strong
Balance present needs with future goals
That's how endowment story rolls

[Chorus]
Spend some, save some, keep it growing
Intergenerational equity flowing
Five percent rule keeps us on track
Give today but save some back
Spending policy, clear and bright
Balance current needs with future sight
Perpetual funding is the way
Endowments last for every day

[Verse 2]
Risk tolerance sits somewhere between
Not too wild, not too clean
Moderate risk for moderate gain
Steady income through sun and rain
Liquidity needs aren't very high
Long-term focus reaches the sky
But keep some cash for yearly spending
Smooth operations never ending

[Chorus]
Spend some, save some, keep it growing
Intergenerational equity flowing
Five percent rule keeps us on track
Give today but save some back
Spending policy, clear and bright
Balance current needs with future sight
Perpetual funding is the way
Endowments last for every day

[Bridge]
When markets rise, don't spend it all
When markets drop, don't hit the wall
Smoothing rules help even the ride
Stable spending, year after year we glide
Trustees watch the balance beam
Current mission, future dream

[Verse 3]
Asset allocation spread around
Stocks and bonds and alternatives found
Diversification is the key
Protect the fund for you and me
Regular review keeps us aligned
Investment committee peace of mind
IPS document makes it clear
Guidelines we follow year by year

[Final Chorus]
Spend some, save some, keep it growing
Intergenerational equity flowing
Five percent rule keeps us on track
Give today but save some back
Spending policy, clear and bright
Balance current needs with future sight
Perpetual funding is the way
Endowments last for every day
Forever lasting, forever giving
That's how endowments keep on living

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