Chapter 140: Investments
140.015 Investment Policy for Retirement, Disability and Death Plan
Bd. Min. 6-26-12, Revised Bd. Min. 6-14-13, Revised Bd. Min. 9-12-13.
- Introduction -- The University's Retirement, Disability and Death Benefit Plan (“Plan”) was established to provide retirement income and other stipulated benefits to qualified employees in amounts and under the conditions described in the plan. A Trust was established in 1958 and is being funded to provide the financial security of those benefits.
- Responsibilities and Authorities – See CRR 140.010 “Policy for Management and Oversight of Selected University Investment Pools.”
- Investment objectives -- The primary objective to be achieved in the active management of Trust assets is to provide for the full and timely payment of retirement, disability and death benefits to qualified employees. In order to fulfill this objective the University must maintain a prudent actuarially sound funding of the Plan's liabilities. This funding requirement is derived from two principal sources; the total investment return on Trust assets and the amount of University contributions. In order to minimize the University's required contributions it is imperative that total investment returns be maximized.
- Authorized Investments – The Plan shall be invested in externally managed funds, consistent with the guidelines established in CRR 140.011 “Policy for Investment Manager Selection, Monitoring and Retention,” in the following asset sectors:
Target Asset Mix
40% - 55%
Absolute return strategies
5% - 13%
4% - 12%
3% - 9%
Global fixed income
4% - 10%
High-yield fixed income
7% - 13%
Floating rate bank loans
2% - 7%
Global inflation-linked bonds
2% - 7%
Emerging markets debt
3% - 9%
0% - 7%
Sector allocations shall be monitored on an ongoing basis as changes in market behavior may result in variations from the target asset mix. Rebalancing of the portfolio shall be considered at least annually, and more often if necessary to maintain allocations within the allowable range. The need to rebalance shall take into account any logistical issues associated with fully funding a particular asset sector, as well as any tactical decisions to overweight or underweight a particular asset sector based on current market conditions. The University may utilize external managers to synthetically rebalance portfolio exposures consistent with targets and allowable ranges established by this policy.
Actual sector allocations shall not fall outside of the allowable ranges, with the exception of violations caused solely by periods of extreme market distress, when it may not be possible or advisable to immediately bring such allocations back to within the allowable ranges.
- Other – The Board of Curators delegates to the President of the University the following responsibilities with respect to the Plan:
- Recommend contributions to the Plan.
- Recommend annuity, mortality and other tables as may be useful in actuarial determination.
- Recommend actuarial valuations made by experts retained for that purpose.
- Maintain data necessary for actuarial valuations of the assets of the Plan.
- Maintain accurate records for the Plan.