Committee Charter PDF DownloadCOMMITTEE CHARTER OF THE
BOARD OF TRUSTEES OF KETTERING UNIVERSITY
 

KETTERING UNIVERSITY COMMITTEE ON INVESTMENTS

 

Purpose

The purpose of the Committee on Investments is to maintain the prudent and effective investment of the endowment and to formulate and oversee the investment policies and management of the endowment. The Committee is responsible for the investment, reinvestment and management of all long-term investment assets of the University, and for the appointment of independent investment advisors or managers authorized to invest and reinvest funds of the University. The Committee develops the University’s investment policy guidelines (including asset allocation strategy) for approval by the Board of Trustees and shall annually review all investment results and report such results to the Board of Trustees.

Organization

Review of Charter  

This charter shall be reviewed and reassessed by the Committee on Investments at least annually, and any proposed changes shall be submitted to the Board of Trustees for approval.

Membership/Structure/Quorum 

The Committee on Investments shall be composed of not less than three Trustees. The Chair of the Committee on Administration and Finance shall serve ex officio as a member of the Committee on Investments.  The Vice President for Administration and Finance shall serve, ex officio, as a non-voting member of the Committee, and the President may appoint other non-voting members as required to properly exercise the duties of the Committee.  

A quorum of any meeting of the Committee on Investments shall consist of a majority of its voting members.

Staff  Designee

The Vice President for Administration and Finance and/or his or her designee(s), shall be staff to the Subcommittee.

Meetings 

Meetings shall be held in conjunction with regularly scheduled meetings of the Board, or as deemed necessary by the Chair of the Committee.

Agenda, Minutes and Reports

The Chair of the Committee, in consultation with the Chair of the Committee on Administration and Finance and the staff designee, shall be responsible for establishing the agendas for meetings of the Committee. An agenda, together with relevant materials, shall be sent to the committee members in advance of each meeting. Minutes for all meetings shall be prepared in draft form by the staff designee and reviewed by the Chair, and shall be approved by the Committee members at the following meeting. The minutes shall be distributed periodically to the full Board of Trustees and the Committee on Administration and Finance. The Committee shall make regular reports to the Committee on Administration and Finance.

Roles and Responsibilities

The Committee’s primary responsibilities are as follows:

  • Develop a comprehensive understanding of the relationship between the endowment’s support of the operating budget (e.g. spending rule) and the investment (e.g. asset allocation) policy;
  • Establish a Long-term Investment Guidelines Policy Statement in consultation with the Committee on Administration and Finance for approval by the Board;
  • Consult with the Committee on Advancement and Alumni Affairs as needed to ascertain the need for overall endowment growth to support the University’s mission and assure that appropriate plans are in place to secure new additions to the endowment;
  • Oversee the adoption of appropriate risk management policies and procedures to manage, to the extent possible, market, liquidity, operational, credit, and other investment and asset management risks;
  • Assure compliance of endowment management with the Uniform Prudent Management of Institutional Funds Act as enacted in the State of Michigan;
  • Select investment managers, as appropriate, for managing investments using specific asset classes and strategies;
  • Review overall portfolio and manager specific performance, asset allocation, and portfolio expenses, and conduct ongoing manager due diligence;
  • Consult with the Committee on Audit and Compliance to ascertain that, to the extent possible, the custodian, brokerage and investment manager accounts of the endowment have been appropriately examined and reconciled;
  • If an investment consultant is engaged, review its performance at least every three years;
  • Review all investment management fees incurred by or on behalf of the University for reasonableness;
  • Report the investment portfolio performance of the endowment and additions to the endowment annually to the Board of Trustees;
  • Work with the staff designee to ensure that internal reporting practices meet the committee’s needs and expectations; and
  • Conduct an annual self-evaluation of the performance of the Committee, and the effectiveness and compliance with this charter.

Committee Charter PDF DownloadCommittee on Investment Charter Download