The Board has the ultimate fiduciary responsibility for the Endowment. The Board must ensure that appropriate policies governing the management of the portfolios are in place and that these policies are being effectively implemented. To implement these responsibilities, the Board sets and approves this Investment Policy and charges the Investment Committee (the Committee) with its implementation and subsequent, ongoing monitoring.
The Investment Committee
The Endowment acknowledges its fiduciary responsibility for the conservation and prudent use of the fund's assets. More specifically, the investment committee appointed by the board of directors assumes the following responsibilities:
- Abiding by the provisions of the Endowment regulations and bylaws.
- Reviewing investment goals, objectives and performance measurement standards which are consistent with the needs of the funds.
- Approving the contribution to /withdrawal from any investment fund asset.
- Approving the appointment of investment managers to invest and manage fund assets.
- In addition, appointing investment consultant, if needed.
- Approving the deployment of existing assets and new monies to investment managers.
- Reviewing investment results in the context of established performance standards and Adherence to the investment guidelines.
- Suggesting to the board the needed actions deemed prudent and appropriate when the investment manager fails to meet mutually-accepted performance standards or significantly violates the investment guidelines.
In recognition of their role as fiduciaries of the funds, investment manager(s) must assume the following responsibilities:
- Make all investment decisions with respect to the assets under its management.
- Comply with this statement and any other written instructions provided by the investment committee. Furthermore, comply with all governmental regulations pertaining to the investment of such assets.
- Inform the Endowment office of any material changes in the manager's outlook, policy, or tactics or in the firm's structure including ownership, financial condition and staff turnover.
- On a monthly basis, provide the Endowment with the performance report and transactions. This includes, but not limited to a report comparing portfolio performance to the relevant indices on a monthly, year-to-date basis and since inception.
- Meet at least annually or at other such times as the Endowment may reasonably request to discuss investment outlook, performance, strategy and tactics, organizational and personnel changes, and other pertinent matters.
The Endowment Office
The Endowment office has the responsibility to:
- Oversight investment activities and report results and findings to Investment Committee.
- Upon the investment committee endorsement and the board approval, the Endowment administration makes payments from the funds to persons or organizations.
- Keep accurate and detailed accounts of all investments, receipts, disbursements and other transactions.
- Provide a written account of all holdings and transactions on a monthly basis.
- Communicating investment goals, objectives, and standards to investment managers, including any material changes that may subsequently occur.
In case the Endowment needs to hire a consultant to provide objective advice. The responsibilities of the consultant will include, but not limited to:
- Providing performance evaluation reports to the investment committee on a quarterly basis. Reports will include absolute and relative performance of each of the investment managers and the total fund. The consultant will utilize meaningful database and market indices for comparisons.
- Providing proactive advice to the Investment Committee on investment guidelines, asset allocation and manager structure. To assist in the selection of new investment managers and the termination of managers. To alert the Endowment of any adverse developments concerning the funds and the performance.