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