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 June 2017
Institutional officials are authorized to maintain the appropriate portfolio asset allocations.
| Asset Class | Target |
|---|---|
| U.S. Equity | 20% |
| Non-U.S. Equity | 20% |
| Core Fixed Income | 10% |
| High Yield Fixed Income | 5% |
| Senior Secured Loans | 5% |
| Global Fixed Income | 5% |
| Real Estate* | 10% |
| Private Markets* | 25% |
* The target allocations for Real Estate and Private Markets are based on invested capital and not committed capital.
