[Verse 1] Mrs. Carnegie left her millions to the trust Built a legacy that never turns to dust Endowments need a policy that's crystal clear How much to spend and save each passing year The board meets quarterly, documents in hand Investment goals across this generous land [Chorus] Spending rate of five percent, keep it steady Time horizon infinite, always ready Return requirements, risk tolerance too Liquidity needs and taxes coming through S-P-E-N-D and R-I-S-K, that's the way Endowments balance tomorrow and today [Verse 2] Intergenerational equity's the name Current students and future ones the same Can't spend it all on buildings here right now Future scholars need resources somehow Purchasing power must be preserved Real returns are what we've always served [Chorus] Spending rate of five percent, keep it steady Time horizon infinite, always ready Return requirements, risk tolerance too Liquidity needs and taxes coming through S-P-E-N-D and R-I-S-K, that's the way Endowments balance tomorrow and today [Bridge] Smoothing rules help budget planning work When markets crash, don't let the spending lurk Three-year average keeps the payments stable Foundation grants stay on the giving table UPMIFA says we can't invade the corpus Unless the donors gave us that endorsement [Verse 3] Foundations have a different kind of goal Five percent minimum payout keeps them whole Private foundations must distribute each year Tax-exempt status keeps the mission clear Asset allocation spans across the globe Sixty-forty mix helps portfolios probe [Final Chorus] Spending rate of five percent, keep it steady Time horizon infinite, always ready Return requirements, risk tolerance too Liquidity needs and taxes coming through S-P-E-N-D and R-I-S-K shows the way Endowments balance tomorrow and today [Outro] Perpetual purpose, charitable dreams Investment policy statements guide the schemes
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