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 |
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)
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
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 Class | Min Weight | Weight | Max Weight | Weight |
| Global Equities | 53% | 66% | 76% | 66% |
| Diversifying Strategies | 5% | 7% | 9% | 7% |
| Inflation Hedge | 13% | 16% | 19% | 16% |
| Deflation Hedge | 0% | 11% | 18% | 11% |
| 100% | 100% |
| Min. | Policy | Max. | |
| Deep Core | |||
| KSUF Endowment Pool | 42.50% | 50.00% | 57.50% |
| Core | |||
| Diversifying strategies | 8.50% | 10.00% | 11.50% |
| Preferred REIT Stock Fund | 8.50% | 10.00% | 11.50% |
| Multi Strategy Bond Fund | 4.25% | 5 - 15% | 17.25% |
| max | |||
| University Loans | 0.00% | 0-10% | $3.75M |
| Total Core | 85-100% | ||
Contingency Allocation |
|||
| Intermediate-term Bond Fund | 0.00% | 0-5% | 5.75% |
| Total Contingency | 0-5% | ||
| Liquidity Allocation | |||
| Short Term Bond/MM Funds | 0.00% | 0-10% | n/a |
| Travel/Accommodation Loans | 0.00% | n/a | n/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.
David Weaver 785-532-7572 |
Lois Cox 785-532-7573 |