Treasury Operations
Long-Term Endowment Pool
Background and Analysis
The Board delegates the authority for monitoring institutional investment, treasury management practices, performance, and compliance with policy to the Investment Committee. The Board’s policies identify broad investment strategy to be followed in the investment of the assets and any general limitations on the discretion given to the institutions' investment managers.
Investment Policy History
Since FY 1989, the Board has employed an investment advisor and fund managers to guide its active investments of endowment funds.
Endowment/Quasi-Endowment Portfolios
In recognition of their long-term charter, the Board’s investment policy indicates that these funds shall be managed actively with the intention of obtaining the highest possible total return while accepting only prudent risk. These funds are to be managed to maintain and preserve, over time, the real value of the funds and shall consist of a prudent, diversified investment portfolio.
The Board of Regents employs an investment advisor and money managers to guide its policy of active, diversified investment management.
Asset Allocation Policy, effective September 2005
Institutional officials are authorized to maintain the appropriate portfolio asset allocations.
|
|
Allowable |
|
U.S. Equities |
45% |
40-60% |
Wilshire 5000 |
U.S. Bonds |
30% |
25-35% |
Lehman Aggregate |
International Equities |
15% |
10-20% |
MSCI EAFE |
Real Estate * |
5% |
0-10% |
NACREIF |
Private Equity * |
5% |
0-7% |
Wilshire 5000 |
* The target allocation for Real Estate and Private Equity is based on invested capital and not committed capital. A Private Equity investment program will typically take up to seven years of commitments to get to a target allocation of invested capital. The committed capital that is not yet drawn down will be invested within the U.S. equity portfolio.
Investments
Treasury Operations is a department within the Finance and Operations organization
