Sec. 4-804. Investment Objectives and Asset Allocation for Long-Term Investment Pool Accounts.
The primary investment objective for the long-term investment pool accounts shall be to provide for the long-term growth of principal and income without undue exposure to risk. Funds not needed for expenditures within five years shall be considered long-term. The University's general policy toward the long-term investment pool shall be to diversify investments within both equity and fixed income securities so as to provide a balance that will enhance total return, while avoiding undue risk concentrations in any single asset class. Asset allocation guidelines shall be made on a long-term basis, with consideration to current and projected investment environments. Asset allocation, as a percent of the total market value of the total long-term portfolio, will be set with the following target percentage and within the following ranges:
| Type of Securities | Target | Range |
| Equity | 50% | 30-60% |
| U.S. | 35% | 20-55% |
| Domestic Large Cap | 20% | 10-40% |
| Domestic Mid Cap | 10% | 5-15% |
| Domestic Small Cap | 5% | 0-10% |
| International | 15% | 5-25% |
| Core | 10% | 5-15% |
| Emerging Markets | 5% | 0-10% |
| Real Estate Investment Trusts | 5% | 0-10% |
| Fixed Income | 45% | 30-70% |
| Cash | - | 0-10% |
University representatives will monitor the asset allocation structure of the long-term investment pool. If the portfolio becomes overweighed in an asset class, University representatives will develop a plan of action to rebalance the portfolio.
