Investment policy

The Board of Trustees is ultimately responsible for managing the Endowment, for which it approves the Investment Policy, which sets the investment objectives and the acceptable risks as well as the fundamental rules and criteria that must be taken into account in its management.

The Investment Policy establishes the general objective of achieving a balance between these three aspects, in order of importance:

  • preserving the purchasing power of the fund in the long term;
  • distributing a certain percentage of the fund each year to finance activities, via a mechanism that provides a certain stability;
  • maximizing the profitability of the Endowment in the long term.

Furthermore, the Policy establishes the Strategic Asset Allocation, that is, the percentage distribution of assets by class for which it must aim. For each percentage, tolerance bands are established so that, within these margins, the Investment Committee determines at all times the amount invested in each class and considers a possible rebalancing on a quarterly basis. For each class, a benchmark is also established by which the efficacy of the investments made is measured. For the Endowment as a whole there is an active and a passive benchmark.

To better fulfill its mission, the Board of Trustees has asked the Investment Committee to try to maximize the profitability of the Endowment, but in a manner consistent with the principles of Responsible Investment. To do this, it has approved a specific policy to ensure that investment activity is aligned with the mission and values of the Foundation.