A financial endowment is a pool of assets donated to an institution or individual with the understanding that it be invested, and that the principal capital remains intact. Endowments have typically been established for universities, foundations, churches, charities and other not for profit organisations, and are vital to securing the future of the institution. The nature of endowments enables them to benefit from a long term investment horizon.
UK Institutions
Amongst institutions which have announced ongoing plans to radically increase their exposure to hedge funds is The Universities Superannuation Scheme (USS) which in July 2009 began its search for a basket of 25 single manager hedge funds. With £25 billion in assets, USS is the second largest UK pension fund, and it is now intending to increase its exposure to hedge funds to 20% of the portfolio.