The financial objective of the endowment portfolio is to provide a sustainable level of income distribution in support of the University’s mission while preserving the purchasing power of the remaining invested assets. To satisfy its long-term rate-of-return objectives, the University relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The University targets a diversified asset allocation that places a greater emphasis on equity-based and alternative investments to achieve its long-term objectives within prudent risk constraints.