Our investment philosophy for endowed funds is to diversify investments to provide a balance that will enhance the total return while avoiding undue risk concentration in any single asset class or investment category. We emphasize three main priorities for our endowment portfolio: 1) protect principal; 2) returns should exceed the Spending Policy rate of 5% plus the Consumer Price Index (CPI); and 3) ensure capital growth.

Our non-endowed funds, which are typically invested in mutual funds, are expected to have their entire balance spent down within a certain time period, ranging from one month to five years or more. Non-endowed funds require liquidity and are invested depending on the length of time they are expected to function. The Philadelphia Foundation offers Long, Medium, and Short Term Portfolios designed to meet the varying investment objectives of our donors.