Asset Management Committee: May 5, 2011
The Asset Management Committee met on May 5, 2011. Chairman Lee Borck presided. In addition to the regular performance monitoring reports, the following are a few of the reports received and actions taken:
- Staff presented an orientation for new and current committee members, reviewing governance structure, the various pools of assets, the investment policy statement, the real estate pools and the policies governing their management.
- Received a report from the risk assessment subcommittee reviewing subcommittee work to date, some conclusions and possible implications for managing investments in the future and planned additional activities for the subcommittee.
- Reviewed and approved changes to the investment policy statement incorporating an additional custom benchmark for the expendable funds pool and forwarded a recommendation to the board of directors.
- Received an update on and approved a financing mechanism for construction of the feed mill to replace the existing mill on the NBAF site and forwarded a recommendation to the board of directors.
- Reviewed and approved a real estate policy statement setting forth policies for the receipt, management and disposition of real estate contributed to or acquired by the foundation and forwarded a recommendation to the board of directors.
- Received a new opinion from a tax law firm heavily experienced in tax-exempt entity law regarding the implications of forming three entities for real estate and investment management without receiving an IRS private letter ruling. The entities were the subject of an IRS private letter ruling request that received a "rejected without opinion" response from the IRS. Based on the law firm's opinion, the committee recommended proceeding with forming the entities and forwarded the recommendation to the board of directors.
- Endowment pool annualized returns for the periods ending March 31, 2011 were 11.29 percent, 0.80 percent, 4.00 percent and 6.39 percent for the one-, three-, five- and 10-year periods respectively.
If you are interested in learning more about the status of the endowment and the policies and procedures utilized in managing all KSU Foundation assets, please visit the foundation website at www.found.ksu.edu and click on "Our financials" then "Investments."