The endowment consists of long-term oriented, investment assets that are the result of historical gifts to Davidson College as well as investment gains. The endowment exists to provide perpetual support for the college's operating budget. Approximately 19% to the college's operating budget was contributed by the endowment in fiscal year 2012. The financial objective is to preserve and enhance the real (i.e. inflation adjusted) purchasing power, while providing support for spending needs. The investment objective is to attain a real return of at least 5% over the long term. Real return is capital appreciation, dividends, and interest - net of fees and adjusted for inflation. A diversified portfolio of investment assets is developed to satisfy the college's long-term investment objective at an appropriate level of risk and liquidity.