The total amount to be invested in an organization can be called an endowment fund when such will be used to back an entity for the purposes specified by the donor (or donors) of the funds.
The endowment fund, as pointed out by economist David Swensen in his book "Pioneering Portfolio Management," reduces the volatility of revenue, allows long-term planning and thus strengthens the ability of an institution to be viable from an operational standpoint.
In FMCSV, the endowment fund was established by the Board of Trustees, formed by members of the Souto Vidigal family and by outside guests. Its funds are unrelated to those of the rest of the equity of the Foundation and are managed and accounted for separately.
The asset management of this fund determines the investments to be made with care and responsibility for the purpose of the upkeep of FMCSV’s activities and the perpetuation of its equity. The use of the funds must also comply with the corporate objective of the Foundation and, therefore, it must favor companies and activities with social responsibility values.