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KSU Foundation

Investment policy

The purpose of an investment policy is to establish appropriate risk and return objectives in light of the fund’s risk tolerance, spending and investment time horizon. These three policy statements are reviewed annually by the Asset Management Committee.

Statement of Investment Policy for the Kansas State University Foundation
Endowment Pool — Asset Allocation Policy
Endowment Pool — Distribution Policy
Expendable Funds Pool — Asset Allocation Policy

Statement of investment policy for the KSU Foundation

In recognition of its fiduciary responsibilities, the board of directors of the Kansas State University Foundation (the “Foundation”) has, through its Asset Management Committee (the “Committee”), adopted the following statement of Investment Policy (the “Policy”). The Policy identifies and defines the investment authority, philosophy, organizational structure, principles, processes and procedures to be adhered to in the execution of the investment management function, and the roles and responsibilities of the Committee, investment staff (the “Staff”) and service providers such as managers, custodians and consultants.

Section I: Source of Authority
Section II: Code of Conduct
Section III: Definition of Scope
Section IV: Purpose Statement
Section V: Statement of Responsibilities of Asset Management Committee and Staff

Section VI: Endowment Pool Policies
1. Performance Objectives of the Pool
2. Investment Philosophies and Principles
3. Strategic Asset Allocation Policy (Exhibit “D”)
4. Investment Policies, Guidelines and Restrictions (manager/strategy selection & risk management)
5. Distribution Policy

Section VII: Expendable Funds Pool Policies
1. Performance Objectives of the Pool
2. Investment Philosophies and Principles
3. Strategic Asset Allocation Policy (Exhibit “H”)
4. Investment Policies, Guidelines and Restrictions (manager/strategy selection/ & risk management)

Section VIII: Miscellaneous Provisions

Glossary: (Exhibit “M”)

Statement of Investment Policy for the Kansas State University Foundation Exhibits

Exhibit “A” – Source of Authority: Kansas State Statutes
Exhibit “B” – Code of Conduct: CFA Institute “Investment Management Code of Conduct for Endowments, Foundations and Charitable Organizations.”
Exhibit “C-1” – Statement of Responsibilities of Asset Management Committee and Staff: Decision table
Exhibit “C-2” – Statement of Responsibilities of Asset Management Committee and Staff: Communication/ organization chart
Exhibit “D” – Endowment Pool Strategic Asset Allocation Policy
Exhibit “E” – Endowment Pool risk metric reporting
Exhibit “F” – Endowment Pool Re-balancing Policy
Exhibit “G” – Endowment Pool Distribution Policy
Exhibit “H” – Expendable Funds Pool Strategic Asset Allocation Policy
Exhibit “I” – Expendable Funds Pool risk metric reporting
Exhibit “J” – Expendable Funds Pool Re-balancing Policy
Exhibit “K” – Proxy voting policy
Exhibit “L” – Socially responsible investment policy
Exhibit “M” – Glossary of investment terms
Exhibit “N” – Expendable Funds Pool Reserve Policy

 

Endowment pool

Asset allocation policy

The following table defines the endowment’s strategic and tactical asset allocation and the minimum and maximum allocation limits of each asset class as defined by the Rebalancing policy:

  Tactical Policy Strategic Policy
Asset ClassMin WeightWeightMax WeightWeight
Global Equities53%66%76%66%
Diversifying Strategies6.5%9%10%7%
Inflation Hedge13%16%19%16%
Deflation Hedge0%9%16%11%
  100% 100%

Expendable funds pool asset allocation

 

Core allocation

 Min.PolicyMax.
  Deep Core 
KSUF Endowment Pool42.50%50.00%57.50%
  Core 
Diversifying strategies8.50%10.00%11.50%
Preferred REIT Stock Fund8.50%10.00%11.50%
Multi Strategy Bond Fund4.25%5 - 15%17.25%
   max
University Loans0.00%0-10%$3.75M
Total Core 85-100% 
    

Contingency allocation

   
Intermediate-term Bond Fund0.00%0-5%5.75%
Total Contingency 0-5% 
    
Liquidity Allocation   
Short Term Bond/MM Funds0.00%0-10%n/a
Travel/Accommodation Loans0.00%n/an/a
Total Liquidity 0-10%n/a

 

If you have questions or comments, or would like to request a copy of the policy, please contact us.

Lois Cox, CFA, CFP
Vice president for investment/Chief Investment Officer
785-532-7573

Rush Harvey, CMT, CAIA
Investment officer
785-532-7445