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The general view of investing in Endowment Policy



Endowment Policy

The endowment policy is a type of life insurance policy that designed to pay a lump sum at a certain time or if the person dies an endowment policy may mature at ten, fifteen, or twenty years and some of these policies may also provide money if there is a serious illness. Endowment policies are generally the traditional with-profits or unit-linked and with unitised with-profits funds.


Surrender Value and Adjusted Market Value

Endowments can sometimes be chased early or surrendered early and the policy holder receives the amount of the surrender value determined by the insurance company. How much is received is going to depend on how long the endowment policy has been in effect and the amount paid in to it. Under bad investment conditions the encashment or surrender value may be reduced by a market value adjuster to squeeze out some cash during the time when investment conditions are not good and this means the investor will received only the surrender value minus the adjusted market value.

University Endowment Continues to Grow


By Mariah Byrne

Hoya Staff Writer
December 28, 2011 14:12
Article from The Hoya

Georgetown's endowment reached a record high of $1.162 billion for fiscal year 2011, demonstrating growth of 15.4 percent from last year's value.

The increase also marks a jump in the endowment's growth rate from last year, which stood at 12.8 percent.
This growth is mainly the result of returns to university investments, which came in at a rate of 16.8 percent, according to the annual report of Georgetown's fiscal operations.

Georgetown's investments are managed by the university's investment office through the pooled part of the endowment consisting of unrestricted gifts. The total endowment also includes non-discretionary assets that often have an intended purpose.

The ranking of the university's endowment in comparison to other institutions by the National Association of College and University Business Owners for 2011 is not yet available.

$66.5 million of the endowment's pooled funds were distributed this year.

"The purpose of the distribution policy is to strike a balance between current spending and endowment growth (and thus future spending)," according to the report.

The distribution of endowment funds was countered by contributions totaling $59.5 million. Overall, the university received $207 million in cash gifts and $132.7 million in future commitments.

Article from The Hoya