Asset Management Committee
Approval Date 06/09/2017
Charter: The Policy on Standing Committees to the Board of Directors (“Board”) of the Kansas State University Foundation (“Foundation”) provides for the establishment of the Asset Management Committee (“Committee”). The Committee provides leadership and oversight of the assets of the Foundation under the committee’s responsibilities. The committee reviews policies, procedures and results to ensure the assets are managed in a manner supportive of the Foundation’s mission and in accordance with fiduciary standards and applicable law.
Functions: Development of endowment distribution policy, investment management and asset allocation policies and oversight of management of all foundation assets other than real estate in accordance with the Board approved policies.
1. Voting members —
- Minimum of five at large members of Board
- Chair of Finance committee
- Maximum of three Non-Board member Trustees or non-trustees with special investment-related expertise*
- The term limits as defined in the Policy on Standing Committees will be staggered so as to provide for continuity.
2. Potential Ad hoc members (non-voting)—
- Foundation President/CEO
- Chairman of Board
- Vice Chairman of Board
- Deans Council representative
- Kansas State University Vice President for Admin & Finance/CFO
Board of Directors
- Establish an appropriate endowment distribution policy and rate that maintains the intergenerational equity of the endowments and complies with Kansas Statutes.
- Approve committee charter, structure and composition every two years or as needed.
- Review and take action on committee recommendations and actions.
*A majority of the committee’s voting members must be members of the Board of Directors of the Foundation.
- Maintain current knowledge of institutional asset management
- Review, discuss and modify investment policies brought forth by staff. Forward policy recommendations to the Governance Committee or Board, as appropriate.
- The Committee will collaborate with the Finance and Audit Committee to make distribution policy recommendations annually to the Board. The goal is to balance current KSU and Foundation revenue needs against the needs of future generations by maintaining the sustainability of the endowment as required by Kansas Statutes and the sustainability of Foundation operations.
- Oversee the management of Foundation investments by staff.
- Responsible for reviewing and approving objectives, risk and reserves for:
- Endowment Pool
- Expendable Funds Pool
- Government Bond Pool
- Charitable Gift Annuities
- Trusts-(a Trust Advisory Management Group is established and will report no less than twice a year to the Committee)
- Life Insurance Policies
- Manages the Foundation’s investable unrestricted assets as approved by the Finance & Audit Committee.
- Develop policy and procedures with regards to contributions to the Foundation of publically traded or closely held securities, gifts related to securities or investment strategies. This includes decisions as to whether to liquidate or hold the gifted assets and if held, the subsequent management of the asset. The Chairperson of the Committee has the authority to empower staff to manage and liquidate contributed assets falling outside the policies in place at the time of the gift.
- Provides oversight of contributed assets which are held for use by student investment programs.
- It is acknowledged that the Foundation has direct ownership of some Real Estate assets. The management of these assets is handled through the KSU Charitable Real Estate Foundation. By policy, the KSU Charitable Real Estate Foundation will report directly to the Board.
- Make recommendations every two years or as needed to the Board regarding committee charter, structure and composition.
- Maintain current knowledge of institutional asset management policies, strategies and techniques and make recommendations to committee.
- Prepare new or revised policies related to investment management for review and action by the committee.
- Prepare reports for the committee to support its monitoring responsibilities of the Foundation asset management process.
- Develop appropriate systems and processes to implement approved policies. Ensure appropriate communication to all constituents and ongoing review of approved policies.
- The Sr. Director of Compliance Services will obtain input from an advisory committee of volunteers and outside professionals who will review Trust management investments and activities. Summary information will be provided to the Committee as needed or when action is required.
- Develop recommendations for the handling of contributed assets falling within and outside of established policies and presenting the plans to the Chairperson of the Committee for action.
- VP for Investments/Chief Investment Officer
- Sr. VP for Operations & Finance/CFO/COO
- Sr. Director of Accounting/Controller
- Director of Investments
- Sr. Director of Compliance Services
Committee will meet at a minimum quarterly prior to Board of Directors meeting.