Annual Endowment Report June 30, 2024
Overview It is the policy of Morehouse College to manage its endowment funds (“Endowment”) in a manner that will maximize the benefit intended by the donor, to produce current income to support the programs of the College, and to achieve growth of both principal value and income over time sufficient to preserve or increase the purchasing power of the assets. Oversight on the Endowment is the responsibility of the Financial Sustainability Committee (the “Committee) of the Board of Trustees. The Morehouse College Endowment is an investment pool composed of funds with a variety of designated purposes and restrictions. Although distinct in purpose or restriction, Endowment funds are commingled for investment purposes but tracked independent accounting. The Endowment’s primary investment objectives are to safeguard and preserve the real purchasing power of the Portfolio while earning investment returns that are commensurate with the College’s risk tolerance, liquidity profile and sufficient to meet its operational requirements.
Market Value The Endowment totaled $250.4 million as of 6/30/24.
Liquidity The Endowment is managed to provide adequate liquidity to meet the spending and operational needs of the College. A thoughtful and structured approach should be taken to establish and maintain the desired allocation to illiquid investments. Portfolio liquidity is monitored using the following guidelines:
CATEGORY
MARKET VALUE GUIDELINE
DESCRIPTION
Liquid
No less than 60%
daily to 31 days
Semi-liquid
No more than 20%
31 days to one year
Illiquid
No more than 20%
greater than one year
Due to the uncertain nature of commitments, drawdowns and distributions and market volatility the maximum target will be monitored carefully and managed as closely as possible.