The purpose of the Endowment is to support the College and its mission over the long-term. Accordingly, the primary investment objectives of the Endowment are to:
Green Mountain College has incorporated a new investment strategy into the endowment portfolio for the purposes of diversification and to honor the integrity of its environmental and ethically conscious mission. The Socially Responsibility Investment Advisory Committee (SRIAC) was established. The members of the committee are two students, one faculty member and the Vice President of Finance and Administration. The new committee recommended that the Investment Committee of the Board of Trustees approve an initial investment equal to 10% of our current endowment portfolio in a Socially Responsible Investment fund, specifically, The Portfolio 21 Fund. The recommendation was approved and implemented in June 2010.
In order to preserve the purchasing power of both principal and of withdrawals made available for spending, the long-term annualized total rate of return objective for the Endowment is inflation plus 5%. A minimum rate of return equal to the rate of inflation is required to preserve the real purchasing power of the Endowment, and the additional 5% is required to provide for spending. To satisfy its long-term rate of return objective, the Endowment relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and from current yield (interest and dividends). Asset allocation guidelines and the investment manager structure should ensure adequate diversification in order to reduce the volatility of investment returns and preservation of capital.
As of June 30, 2012, our total Endowment funds were invested as follows:
| $2,348,938.90 | Key Bank Multi-Asset Fund |
| $316,284.07 | Portfolio 21 Fund (Socially Responsible Investment Fund) |
| $376,740.47 | Citizens Bank Money Market Fund |
| $3,041,963.30 | Total Endowment |