Asset Management Committee: May 19, 2015
Chairman Kevin Lockett presided at the regularly scheduled meeting on May 19, 2015. The following are reports received and actions taken:
Meeting minutes for the February 26th, 2015 Asset Management Committee were approved.
Staff reported the Endowment Pool ended the first calendar quarter of 2015 with a positive return of 1.68 percent and an ending market value of $482 million. Staff reviewed performance for the quarter and noted that performance exceeded the benchmark by 24 basis points. Both manager selection and tactical positioning contributed to relative outperformance during the quarter. The main driver of relative outperformance during the quarter was an underweight to inflationary assets and an overweight to hedge fund strategies.
Staff noted that actual allocations within the endowment pool are near the stated target asset allocation, with no allocation greater than three percent from target. The portfolio is within liquidity targets as well.
Staff presented the Watch-List and Risk Analytic Reports to the Asset Management Committee.
Staff provided the Asset Management Committee with additional detail regarding longer term performance, noting that performance of the endowment pool is comparable to many of the largest university endowments. Additionally, staff discussed its current research initiatives in various asset classes.
Staff discussed the expendable funds pool and noted that based on cash flows, there was no change to the policy balance of approximately $90 million. Roughly $36 million is being held for capital projects that are being heavily drawn on for construction. The expendable funds pool ended the quarter with a positive return of 0.77 percent. Staff noted that half of the expendable funds pool policy balance is invested in the endowment pool and a significant portion of the other half is in short-duration or money market type instruments to provide liquidity.
Staff ended the meeting by previewing various discussion topics that it will present in the June 2015 meeting. These include a Due Diligence Process Overview, Annual Peer Data Review, Review of the Investment Policy Statement and AMC Charter, and FY16 Investments Budget.