Long-Term Investment Policy Summary
Board of Regents has ultimate responsibility for University's long-term investments:
- Investment Policy is controlled by Regents & establishes return objectives, strategic allocations ranges, & spending policy.
- Office of Investments formed in 2002 to manage long-term investments on campus.
- Baylor Executive Investment Committee (BEIC) provides oversight of Investment Office.
- Comprehensive reporting is provided to BEIC and Board of Regents.
Offce of Investments is charged with optimizing portfolio performance over long time horizon using consistent & disciplined investment approach:
- Identify, underwrite, & monitor investments in funds run by managers experienced in each sector of portfolio.
- Manage & report on strategic asset allocation ranges specified in Investment Policy.
- Distribution of endowment income based on historical net asset value average & spending rate (currently 5.0% of previous 36 months average net asset values).
- Minimum distribution shall equal the amount distributed from the previous year, and the maximum distribution shall not exceed 7% of previous 36 months average net asset values
- New contributions to the endowment within a fiscal year participate in the distribution in the first month of the following fiscal year