Foothill College Endowment Fund Case Facts Type of investor Purpose Asset base Stated return desire Other return

Foothill College Endowment Fund

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Case Facts Type of investor Purpose Asset base Stated return desire Other return factors Institutional; endowment Provide annual scholarships currently totaling $39.5 million $1 billion 6 percent, calculated as spending rate of 4 percent plus previously expected college tuition inflation of 2 percent Revised expectation of college tuition inflation is 3 percent Tax exempt Tax concerns Questions 1. Underline the word at right that best describes the client's: A. Risk tolerance Below average B. Liquidity requirement Significant C. Time horizon Single stage D. Overall time horizon Short to intermediate term E. Tax concern Significant 2. Discuss appropriate client objectives: A. Risk B. Return Above average Not significant Multistage Long term Not significant