Part 4 Subpart 4-8 Investment Policy

Sec. 4-801. Responsibility and Authority for Investment Activity.

Investment activity for University's short-term, intermediate-term and long-term investment pools shall be the responsibility of the President and/or his/her designee, and is to be implemented in accordance with this subpart. The President or his/her designee may delegate to other officers and/or employees of the University, the authority to act in the place of the President or his/her designee in the investment and reinvestment of University funds. In the administration of the powers to make and retain investments, and to delegate investment authority, the President or his/her designee shall exercise ordinary business care and prudence under the facts and circumstances prevailing at the time of the action or decision. In exercising said ordinary business care and prudence, the President or his/her designee shall consider the long-term and short-term needs of the University in carrying out its educational purposes. Other factors, such as expected total return on its investments, price-level trends, general economic conditions, and the safety of principal values and investment return, shall be considered in the investment decision process.

The placement of investments may be accomplished through either direct ownership, participation in pools such as mutual funds, funds managed by external managers or a combination of these methods. The President or his designee shall have the authority to approve the retention of a new manager, fund, or other investment and/or the replacement of an existing manager, fund, or other investment as long as they are within this policy.

Although the University cannot dictate policy to pooled/mutual fund investment managers, the University's intent is to select and retain pooled/mutual funds with policies that are similar to this policy statement.