Investment Strategy | Pepperdine University

Investment Strategy

Objectives

The long-term investment objective of the Endowment is to generate relatively predictable, stable, constant, inflation-adjusted investment returns in excess of distributions to the institution.

We seek to create a portfolio that can achieve a net real return of 7-8% over the long-term. Partnering with top-tier managers and creating a diversified, global portfolio of non-correlated strategies should help the endowment achieve its long-term real return objective.

Philosophy

Our investment philosophy includes a strong equity and alternative investment bias for long-term growth with diversification within and across asset classes to diminish volatility and risk. We seek investment firms that have a unique investment approach, an attractive competitive advantage, and a skilled team willing to engage in partnership.

We aim to be innovative in our investment approach. Our increased allocation to alternative investments is viewed as a diversifying strategy that will dampen the volatility of traditional marketable securities but provide high non-correlated returns. We seek to invest with skill-based managers able to deliver alpha.