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 2013

Institutional officials are authorized to maintain the appropriate portfolio asset allocations.

Asset Class Target Allowable Range Benchmark
U.S. Equities 25% 20-30% Wilshire 5000
Fixed Income 25% 20-30% Merrill Lynch
1-3 Year Govt/Credit
International Equities 25% 20-30% MSCI EAFE
Real Assets* 15% 5-20% CPI + 5%
Private Equity* 10% 5-15% Wilshire 5000

* The target allocation for Real Assets 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 and fixed income portfolios.


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