Table of Contents
Section 1 Financial Management Policy
Intent of the Board of Trustees 1.1
Personal Liability of Trustees 1.3
Conflict of Interest Policy 1.4
Finance and Investment Committee 1.6
Audit and Accounting 1.7
Financial Reporting 1.8
Preservation of Endowment Fund Capital 1.9
Tax-Exempt Status 1.10
Review & Modification 1.11
Section 2 Consolidated Investment Policy
General Investment Objectives 2.3
Spending Policy 2.4
Asset Allocation Guidelines 2.5
Standards for Evaluation of Investment Managers 2.6
Securities Guidelines 2.7
Selection of Investment Managers 2.8
Control Procedures 2.9
Section 3 Appendices
Financial Management Policy
1.1 Intent of the Board of Trustees
The Board of Trustees of the Morehead State University Foundation, Inc.
(hereafter referred to as MSUF) establishes this document to be the Financial
Management and Investment Policy of the MSUF. This document is intended as a
guide to establish the expectations for good business practices and management of the
MSUF. This document does not supersede the need to use good judgment managing
the everyday business of the MSUF with the overall objective to support the mission
of the MSUF as a not-for profit organization.
1 To ensure the financial viability of the MSUF.
2 To ensure the assets of the MSUF are protected against inflation.
3 To establish financial controls to protect MSUF assets against mis-
management and theft.
4 To provide appropriate stewardship of donated assets.
1.3 Personal Liability of Trustees
As a Kentucky non-profit corporation, the MSUF is subject to the provisions of the
Uniform Management of Institutional Funds Act (hereafter referred to as UMIFA). The
UMIFA sets forth standards of conduct that apply to each member of the MSUF Board of
Trustees. These standards generally require that each Trustee discharge his/her duties, in
good faith; with the care an ordinarily prudent person in a like position would exercise
under similar circumstances; and in a manner he/she reasonably believes to be in the best
interests of the MSUF.
Each Trustee owes fiduciary duties both to the MSUF and its members; and any
breach of those duties may give rise to personal liability on the part of the individual
Trustee and/or corporate liability on the part of the MSUF.
1.4 Conflict of Interest Policy
The nondisclosure of "conflicting interest transactions" may give rise to
individual liability on the part of Officers and Trustees and corporate liability on the
part of the MSUF. Officers can include paid employees or volunteers working on
behalf of the MSUF. Accordingly, the MSUF Board of Trustees has adopted the
Each Officer and Trustee will disclose in writing to the Board of Trustees all
"conflicting interest transactions," as that term is defined in Section 7-128-501 of the
UMIFA. The MSUF chooses to include MSUF Officers in this policy. A "conflicting
interest transaction" means a contract, transaction, or other financial relationship
between the MSUF and:
1) An MSUF Officer or Trustee, or
2) A party related to the MSUF Officer or Trustee, or
3) An entity in which the MSUF Officer or Trustee is a Officer or Trustee or has
a financial interest.
For purposes of this disclosure, the UMIFA defines a party related to an MSUF
Officer or Trustee as a spouse, descendent, ancestor, sibling, the spouse or descendent
of a sibling, an estate or trust in which the Officer or Trustee or a party related to the
Officer or Trustee has a beneficial interest, or an entity in which a party related to an
Officer or Trustee is a Officer, Trustee, or has a financial interest. Consistent with this
policy, at least annually, each Officer and Trustee will certify in writing to the Board
of Trustees that he/she has provided written disclosure of all "conflicting interest
transactions," or he/she is not subject to any "conflicting interest transactions."
Thereafter, the Board of Trustees (or a committee thereof) will review each
"conflicting interest transaction" so disclosed and, by affirmative vote of a majority of
the disinterested Trustees, will determine whether such transaction is fair to the
MSUF. In the event the "conflicting interest transaction" is determined to be fair to the
MSUF, such determination will be deemed to constitute an authorization, approval or
ratification of such transaction.
The CEO of the MSUF, through the Director of Finance, is responsible for the
budgeting process. Prior to the beginning of each fiscal year, an annual operating
budget for the MSUF will be prepared and presented to the Board of Trustees for their
review and approval. The annual budget should be presented in sufficient detail to
enable the Board to understand how the MSUF plans to conduct the main elements of
its business. The annual operating budget will be funded by a combination of general
investment income, fees associated with the management of true & quasi-endowed
funds (not to exceed 1% of the calendar year end MSUF endowment market value) &
any carry-forward balances from prior budget year operation. Additionally, as a
service to MSU, the MSUF will manage the assets of privately funded operating
accounts in which the fees for management will equal the investment earnings of the
assets while held by the MSUF. The earnings from such funds will be deposited into
the MSUF’s general investment income account.
The CEO of the MSUF is authorized to spend up to $100,000 during a fiscal
year on non-budgeted items which, in the CEO’s judgment, will benefit the MSUF.
The CEO should report spending on un-budgeted activities at the next regularly
scheduled Board meeting.
During major fund-raising campaigns in which the Board has already approved
specific projects to be funded by the campaign, the CEO may use un-restricted
contributions raised as part of the campaign to help complete any campaign project.
If MSUF incurs an operating deficit for two consecutive years, the Board must
address and consider a multi-year business plan to correct the deficit. The budget may
include an expense contingency item not to exceed two percent of the total revenue.
Operating results as compared to the budget will be reported to the Board at
each full meeting.
1.6 The Finance and Investment Committee
The Chair of the Board will appoint a Finance and Investment Committee
(hereafter referred to as F&I Committee) to serve as the review agency for the Board
concerning this policy and all related matters. The committee must be chaired by a
member of the Board as selected by the Chair of the Board and approved by the
The F&I Committee will consist of no less than three and no more than six
members. At least three members of the F&I Committee must be members of the
Board, including the Chair of the F&I Committee. One MSU staff member may be a
voting member of the F&I Committee. The F&I Committee will meet as determined
by its Chair.
The Chair of the F&I Committee may invite non-members with expertise in
taxes, law, investments or other financial matters as advisors. The Chair may ask
them to be voting members or non-voting advisors only. The advisor’s status will be
clarified in the minutes of the specified meeting.
The Committee's duties include but are not limited to the following:
1) Oversee and monitor the MSUF’s financial condition, investment portfolio,
operating activity, and financial procedures;
2) Review quarterly financial reports to be presented to the Board;
3) Present the annual operating budget to the Board;
4) Review and propose changes to the FMIP, if appropriate;
5) Establish the MSUF’s Investment Policy through its’ Investment sub-
The F&I Committee will have a sub-committee as needed to assist in
investment oversight. The sub-committee will be composed of at least one F&I
Committee member and other non-members as the F&I Committee deems necessary,
up to a maximum of five members. The sub-committee will have authority to develop
money manager selection criteria, screen candidates and select money managers for
the MSUF’s investments within the constraints of this policy. The sub-committee will
also monitor money manager performance. The sub-committee will report to the F&I
Committee regarding investment performance and report any changes to investment
The CEO of the MSUF has responsibility for day-to-day decisions to carry out
investment policy with the Director of Finance acting as his/her agent for daily
transactions. The Director of Finance will be the primary contact with money
managers, banks, brokerage houses and other financial institutions. The CEO and the
Director of Finance should be available to answer questions, interpret the Board's
policy, and administer accounting and reporting functions.
The F&I Committee may make emergency decisions which conflict with this
FMIP. All emergency decisions will be reviewed and ratified by the Board at its next
regularly scheduled meeting.
1.7 Accounting and Auditing
The MSUF will follow generally accepted accounting principles for non-profit
organizations in maintaining its financial records and preparing financial statements.
The financial books and records of the MSUF will be audited annually by an
independent firm of certified public accountants. The annual audit will be presented
to the Board for approval at its first meeting following completion of the audit.
Audited financial statements including the independent firm’s opinion are available
The Chair of the Board will appoint an Audit Committee as needed to serve as
the review agency for the Board concerning audit related matters. The Audit
Committee will be chaired by a member of the Board selected by the Chair of the
Board and approved by the Board.
The Audit Committee will consist of no less than three and no more than six
members. At least two members of the Audit Committee should be members of the
Board, including the Chair of the Audit Committee.
The Chair of the Audit Committee may invite non-members of the Board with
specialized expertise as advisors.
The Committee's duties will include the following:
1) Establish criteria for selection of an independent firm of certified public
2) Select independent firm to prepare annual audit;
3) Meet as necessary with the independent firm to review the audit report and
discuss any related matters;
4) Assist independent firm in presenting audit findings to the Board;
5) Monitor management’s progress toward making any improvements suggested
by the independent firm.
Representatives of the Audit Committee may meet with the independent firm
without MSU staff prior to presentation of the audit to the Board for approval. The
purpose of the meeting will be to allow members of the Audit Committee and the
independent firm to speak directly. The Chair of the Audit Committee will appoint
members to attend the meeting.
1.8 Financial Reporting
The goal of financial reports is to allow the Board to make informed decisions.
The CEO of the MSUF through the Director of Finance is responsible for presenting
periodic financial reports to the Board that clearly show the financial condition of the
MSUF in accordance with generally accepted accounting principles.
Financial reports should include MSUF’s statement of financial position,
statement of activities, budget operating activity, investment status and if applicable
report of capital purchases.
1.9 Preservation of Endowment Fund Capital
The UMIFA permits the expenditure of the total return (interest, dividends and
capital gains/losses), realized and un-realized, of an endowment fund for the uses and
purposes for which the fund was created. The UMIFA stipulates, however, that the
historic dollar value (principal) of the fund must be preserved. The historic dollar
value includes the original and sub-sequent donations to the fund as well as
accumulations made pursuant to an applicable gift agreement.
The UMIFA states that a governing board in appropriating the above net
appreciation for expenditure must "exercise ordinary care and prudence under the facts
and circumstances prevailing at the time of the action or decision..." Among the
considerations of the board are long and short term needs of the organization, present
and anticipated financial requirements, expected total return on investments, price
levels, and general economic conditions.
The preservation of the historic dollar value of endowment funds is of
extreme importance to the MSUF. In order to ensure that the value of each fund not
only maintains its historical dollar value, but also keeps pace with inflation, the
MSUF’s policy is to retain in endowment funds a portion of the investment return to
support the increasing cost of benefits in the future.
Accordingly, the MSUF approves the annual spending rate and is not to exceed
3.5%. The annual spending rate is approved during the first calendar year meeting of
the Board. Allowed endowment spending is calculated by multiplying the annual
spending rate by the 12-quarter rolling average market value of the MSUF
1.10 Tax-Exempt Status
The MSUF is a non-profit Kentucky Corporation organized under Section
501(c) (3) of the Internal Revenue Code. This form of organization restricts the types
and amounts of revenue which the MSUF can generate without risking tax-exempt
The CEO of the MSUF has the responsibility to ensure that the combined
activities of the MSUF do not threaten the tax-exempt status. The CEO may consult
with tax attorneys, accountants and other professional advisors when questions arise
on this issue. The CEO will seek the guidance of the Board if any MSUF activity
appears to affect tax-exempt status.
1.11 Review and Modification
This “Financial Management and Investment Policy” should be reviewed
periodically by the F&I Committee. Changes should be presented as necessary for
approval by the Board.
The purpose of this Investment Policy Statement (IPS) is to assist the Finance &
Investment Committee (Committee) of Morehead State University (Morehead State) in
effectively supervising, monitoring and evaluating the investment performance of its
Foundation (the Foundation).
The Foundation's investment program is defined in the various sections of this IPS by:
1. Stating the objectives in a written document.
The objectives are desired results reflecting the Committee’s attitudes, expectations
and guidelines for the investment of all assets.
2. Setting forth an investment structure.
This structure includes various asset classes and investment management styles
that, in total, are expected to produce a satisfactory level of overall diversification and
total investment return over the long term.
The Committee will determine the allocation of assets with the assistance of the
3. Providing policy guidelines for the investment portfolio.
These guidelines are designed to control the level of overall risk and liquidity
assumed in the portfolios. Through effective monitoring of policy, the Committee
hopes to optimize the likelihood of meeting return and risk objectives, and ensure that
the assets of the Foundation are managed in accordance with stated objectives.
4. Encouraging effective communications.
A periodic review process involving the Committee, the investment consultant and
the investment managers is intended to assist the Foundation achieve the stated
5. Complying with applicable provisions of ERISA, fiduciary, prudence and due
diligence requirements that experienced investment professionals would utilize.
This IPS has been formulated by the Committee after considering the performance
implications of a range of alternative asset allocation policies and describes the prudent
investment process deemed appropriate.
SECTION I: GENERAL INFORMATION
The Mission of the Morehead State University Foundation, Inc. is to prudently administer all
assets of the Foundation and/or Morehead State University as provided by federal and state
law and regulations and through fiduciary responsibility between the University and the
Foundation, to promote educational purposes in connection with or at the request of the
University by encouraging, sponsoring and supporting institutional priorities, to provide
advice, consultation and support to the President and Board of Regents of Morehead State
University, and to provide volunteer leadership to Morehead State University’s fund raising
programs and to assist other institutional advancement efforts.
Organized in 1979 as a non-profit Kentucky Corporation, the Morehead State University
Foundation, Inc. provides private financial support to the University as a tax-exempt
educational foundation under section 501 (C) (3) of the Internal Revenue Code of the United
The MSU Foundation is a non-affiliated corporation recognized under Kentucky law as an entity
dedicated to assisting the University but not controlled by the institution. As such, it reimburses the
University for staff support, office space, utilities and other services under terms of a detailed
operating agreement. The agreement also establishes the Foundation's fiduciary responsibilities for
managing gift assets of the University.
SECTION II: KEY INFORMATION / OTHER ADVISORS
PLAN TAX IDENTIFICATION NUMBER: 31-1003236
PLAN ADMINISTRATOR: Corporate Foundation
Authorized Signer: James A. Shaw, Vice President for University Advancement CEO
PLAN CUSTODIAN: Trust Company of Oxford Financial Group, Ltd.
PLAN TRUSTEE: None
INVESTMENT CONSULTANT: Oxford Financial Group, Ltd.
PLAN YEAR: Begins on July 1 and ends the following June 30
2.3 General Investment Objectives
The long-term investment objective of the Foundation is to preserve the real
(inflation adjusted) purchasing power of endowment assets as well as generate capital
appreciation, after accounting for endowment spending, inflation and costs of the
portfolio and fund management, both internal and external.
• The Foundation has established an annual maximum approved spending goal
for distributions of up to three and one-half percent (3.5%);
• The Foundation has established a management fee used to support the annual
operating budget which will not exceed one percent (1%);
• The cost of managing the portfolio (money manager fees applied directly to
each endowment) shall not be greater than one percent of the portfolio value
• Therefore, the long-term annual return must be sufficient to meet the above
spending requirements plus inflation.
2.4 Spending Policy
Capital market history suggests that, over the long-term, the targeted asset mix
will produce a real (inflation adjusted) average annual return between 4 and 5 percent.
On the basis of this long-term expected real return a sustainable spending rate can be
established to provide predictability and consistency. To this end, an endowment
spending goal of 3.5 percent will be established. Excess earnings shall remain
invested to secure future spending capacity and pay program fees. If actual earnings
do not meet expectations, or if they consistently exceed expectations adjustments to
the spending allocation may be considered by the finance committee for board
The spending rate shall be applied to the twelve (12) quarter rolling average of the
endowment fund. Calculations based on the 12-quarter rolling average will mitigate
short-term market volatility and the impact such volatility might have on spending
The 12-quarter rolling average on which the spending goal shall be applied will be the
12-quarter period ending December 31. Spendable dollars will be calculated annually
in January for the upcoming fiscal year. The calculation is referred to as the “Spending
2.5 Asset Allocation Guidelines
The major component of the Foundation’s IPS is the allocation of assets among various
asset classes, as directed by the Committee.
For example, studies have indicated that anywhere from 85% to 93% of a plan’s
investment performance over longer periods of time can be attributed to how assets are
allocated among various security classes, not how asset managers add value through their
security selection or timing decision.
The Committee has reviewed the long-term historical returns and risks associated with
different asset classes. Also, the Committee has reviewed the importance of asset
diversification and its impact on portfolio volatility and returns.
SECTION I: ASSET ALLOCATION GUIDELINES
The asset allocation that follows is stated within minimum and maximum ranges.
Additionally specific targets based on market value are noted for each asset category.
The Committee wishes to utilize a flexible asset allocation approach. The following broad
asset allocation guidelines shall apply to the Foundation. However, the Committee
reserves the right to modify these guidelines in the future, as appropriate.
Asset Class Target Minimum Maximum
Equities 40% 30% 50%
Fixed Income 50% 40% 60%
Alternative Investments 10% 0% 20%
SECTION II: ASSET CLASS/STYLE DIVERSIFICATION
Within the broad asset allocation guidelines established in Section I above, the Committee
wishes to diversify holdings across a variety of sub-asset classes and investment styles.
The Committee intends to follow a flexible asset allocation approach that will allow the
Foundation to participate in market opportunities as they become available.
Various asset classes, investment styles, and individual investment opportunities will be
carefully considered by the Committee on an ongoing basis. The Committee will rely on
the expertise of its investment consultant when assessing the timeliness and
appropriateness of investments and the Foundation’s optimal asset allocation mix.
SECTION III: REBALANCING THE PORTFOLIO
The Committee, with assistance from the investment consultant, will be responsible for
monitoring asset class exposures. On a periodic basis the Foundation's current asset mix
will be determined. Market values of assets at quarter end will be used for this calculation.
If the total market value of the Foundation’s asset components (when stated as a percentage
of total assets) lies outside the ranges established within this IPS, the Committee may
request the appropriate investment manager(s) to adjust their portfolio to rebalance the total
Foundation into a position of policy compliance. The Committee may also rebalance the
portfolio at any time prior to exceeding the ranges established by the IPS.
SECTION IV: LIQUIDITY
The Committee will be responsible for the liquidity requirements of the Foundation.
Therefore, until directed otherwise by the Committee, the investment managers are not
required to maintain a specific amount of cash reserves for benefit payments.
2.6 Standards for Evaluation of Investment Managers
SECTION I: INVESTMENT PERFORMANCE EVALUATION
The following standards will be used to evaluate the investment managers for the
Foundation. Several important comments about these standards are noted below.
• The time period for assessment will generally be rolling five-year periods. Interim
or shorter-term fluctuations in results will be viewed with appropriate perspective.
• The Committee understands that at varying points in time, individual investment
managers may not generate a performance that achieves all three standards
• No individual standard will be more important than another. Instead, all standards
will be considered in aggregate.
• Evaluation of investment managers will not be limited to the standards set forth
below. Organizational stability and adherence to investment style/process will also
be key points of consideration. These standards are further outlined in the control
procedures of this IPS.
STANDARD NO. 1 - MARKET INDICES
• Each individual investment manager’s performance will be measured relative to
the performance of a market index reflective of the manager’s asset class and
• The performance target for active managers shall be to equal or exceed, net of
fees, the total return of the index benchmark.
• The performance target for passive (index) managers shall be to replicate the
results of the benchmark index before the deduction of investment management
• The overall performance target for these assets shall be to equal or exceed, net of
fees, the total return of a traditional institutional asset mix consisting of 60% S&P
500 Index (S&P) and 40% Lehman Brothers Aggregate Bond Index (SLAG).
STANDARD NO. 2 - RISK
For each investment style, the standard deviation of returns (risk) shall be
no more than 120% of the index benchmark noted in Standard No. 1 over
a period of at least three years. Managers exceeding the 120% standard
will be held to a proportionately greater return expectation.
STANDARD NO. 3 - INVESTMENT MANAGER UNIVERSE
A widely recognized national database and their peer group universes shall
be utilized. The performance benchmark for each of the investment
managers is stated below.
• 3 Years: Top One-Half of Peer Universe
• 5 Years: Top One-Third of Peer Universe
SECTION II: REVIEW AND ANALYSIS
The Committee is aware that the ongoing review and analysis of investment
managers is just as important as the due diligence implemented during the
manager selection process.
Therefore, a review of an investment manager will be conducted if:
• A manager performs in the bottom quartile (75th percentile) of his
or her peer group over an annual period.
• A manager falls in the southeast quadrant of the risk/return
scattergram for three- and/or five-year periods.
Additionally, performance may require the replacement of an individual investment
• A manager consistently performs below the median (50th
percentile) of his or her peer group over rolling three-year periods.
• A manager performs below the median (50th percentile) of his or
her peer group over a five-year period.
• A manager fails to adhere to the investment style for which they
Major organizational changes also warrant immediate review of the manager, including:
• Change in professionals.
• Significant account losses.
• Significant growth of new business.
• Change in ownership.
Investment managers will be monitored on an ongoing basis and it is at the
Committee’s discretion to replace a manager at any time if they deem it
2.7 Securities Guidelines
The investment managers are expected to adhere to the following
SECTION I: POOLED INVESTMENT VEHICLES
Security guidelines for mutual funds, limited partnerships, and other
pooled investment vehicles are determined by the constraints outlined
within each fund’s offering documents. The Committee recognizes that the
use of pooled funds limits their ability to outline specific security
guidelines for each fund.
Each mutual fund is expected to adhere to its respective offering
SECTION II: EQUITIES (SEPARATE ACCOUNTS)
• Equity holdings in any one company should not exceed more than
10% of the cost basis of the portfolio managed by any particular
• Not more than 25% of the market value of the portfolio managed
by any specific investment manager should be invested in any one
• Domestic equity holdings shall be restricted to readily marketable
securities of corporations that are actively traded on the major U.S.
exchanges, including NASDAQ.
• The investment managers shall have the discretion to invest a
portion of the assets in cash reserves when the manager deems
appropriate. However, the manager(s) will be evaluated against a
universe of other managers based upon the performance of the
total funds under the manager’s direct control.
• Issues convertible into common stocks, American Depositary
Receipts (ADR's) and foreign issues are allowable.
• Fixed income instruments with maturities greater than one year are
prohibited with the exception of convertible bonds.
SECTION III: FIXED INCOME (SEPARATE
• The fixed income allocation shall have an average Moody's or
Standard & Poor's credit quality rating of "Baa" or higher.
• The exposure of the portfolio to any one company other than
securities of the U.S. government or its agencies shall not exceed
10% of the market value of the fixed income portfolio managed by
any investment manager.
• Individual security holdings shall be large enough for easy
SECTION IV: MONEY MARKET FUNDS AND CASH
• Cash equivalent reserves shall consist of cash instruments having a
minimum quality rating of A-1, P-1, or F-1 as defined by Moody's,
Standard & Poor's or Fitch's. Eurodollar Certificates of Deposit,
time deposits, and repurchase agreements are also acceptable
• Any idle cash not invested by the investment managers shall be
invested daily through an automatic sweep managed by the
2.8 Selection of Investment Managers
The Committee, with the assistance of the investment consultant, will
select appropriate investment managers to manage Foundation assets.
Managers are required to meet the following criteria:
• The investment manager must provide to the consultant historical
quarterly performance information calculated on a time-weighted
basis, based on a composite of all fully discretionary accounts of
similar investment style, and reported net and gross of fees.
• The consultant must prepare performance evaluation reports for the
Committee that illustrate the risk/return profile of the investment
manager relative to other managers of like investment style.
• The investment manager must provide detailed information for the
consultant on the history of the firm, key personnel, key clients, fee
schedule, and support personnel.
• The investment manager must clearly articulate the investment
strategy that will be followed and document that the strategy has
been successfully adhered to over time.
2.9 Control Procedures
SECTION I: DUTIES AND RESPONSIBILITIES OF
The duties and responsibilities of each separate account investment
manager (i.e. excludes pooled vehicles) retained by the Committee shall
include the following:
• Managing the Foundation assets under its care, custody and/or
control in accordance with the IPS objectives and guidelines set
forth herein, and also expressed in separate written agreements
when deviation is deemed prudent and desirable by the Committee.
• Exercising investment discretion (including holding cash
equivalents as an alternative) within the IPS objectives and
guidelines set forth herein.
• Promptly informing the Committee in writing regarding all
significant and/or material matters and changes pertaining to the
investment of assets, including, but not limited to:
1. Changes in investment strategy, portfolio structure, tactical
approaches and significant market value of managed assets;
2. Changes in the ownership, organizational structure, financial
condition, and/or professional staff of the firm; and
3. All material legal, SEC and other regulatory agency
proceedings affecting the firm.
• Promptly voting all proxies and related actions in a manner
consistent with the long-term interests and objectives of the
Foundation set forth herein. Each manager shall keep detailed
records of said voting of proxies and related actions and will
comply with all regulatory obligations related thereto.
• Each manager shall utilize the same care, skill, prudence and due
diligence under the circumstances then prevailing that experienced
investment professionals, acting in a like capacity and fully
familiar with such matters, would use in like activities.
SECTION II: GENERAL REVIEW OF INVESTMENT
All investment policies and investment management guidelines will be
reviewed periodically to determine whether existing policy remains
effective and appropriate.
It is not expected that this IPS will change frequently. In particular, short-
term changes in the financial markets should not require adjustments to the
SECTION III: MONITORING OF INVESTMENT
The Committee intends to monitor the performance of the investment
managers through its investment consultant. Performance monitoring will
be completed periodically, independent of the investment managers.
During these sessions, the Committee will meet to focus upon the various
• The economic environment during the various periods being
• Each manager's adherence to the IPS guidelines;
• Material changes in each manager's organization, investment
philosophy and/or personnel;
• Performance of each investment fund; and
• Comparison of each manager's results to the appropriate standards,
as specified earlier.
SECTION IV: TENURE
The Committee, acting on behalf of the Foundation, reserves the right to
terminate its relationship with any retained investment manager at any
time it deems appropriate to do so.
SECTION V: CONCLUSION
This Investment Policy Statement expresses the Committee's attitude
and/or philosophy which will guide the investment managers toward
the performance desired. These objectives are meant to be sufficiently
specific to be meaningful, but sufficiently flexible to be practical.
The Committee believes that these limitations and guidelines will
assist the investment managers achieve the stated objectives.
The Committee expects the Consultant to monitor the investment
managers relative to their organizational structure, investment style
and compliance with this Investment Policy Statement. The
Consultant shall report to the Committee any findings that may prevent
the Foundation from meeting the objectives of this Investment Policy
MOREHEAD STATE UNIVERSITY