Sec. 4-804. Investment Objectives and Asset Allocation for Long-Term Investment Pool Accounts.
Funds not needed for expenditures within five years shall be considered long-term. 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. 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|
|Domestic Large Cap||16%||10-30%|
|Domestic Mid Cap||7%||5-15%|
|Domestic Small Cap||7%||5-15%|
|Real Estate Investment Trusts||7%||5-15%|
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.