Minutes of a Regular Meeting, June 22-23, 2004 - Digital Collections

REGENTS’ POLICY MANUALSECTION 4—FINANCE AND MANAGEMENT• Mortgage-backed securities, including CMOs• Commercial paper• Money market mutual funds and other cash equivalents4.4.4 INVESTMENT MANAGER(S) APPOINTEDITF assets will be managed by an Investment Management fiduciary appointed by the Board ofRegents, who will be responsible for the oversight of the entire portfolio. The Investment Managementfiduciary normally will be the same as the Board of Regents’ appointed Regents’ Fund InvestmentManager. Similarly, the Investment Management fiduciary normally will be compensated using the samefee structure as provided for in the Regents’ Fund. The fee structure will be reviewed periodically basedon performance and industry standards.4.4.5 PERFORMANCE STANDARDSIn the prudent exercise of its fiduciary responsibility, the University intends to regularly assess theFund Investment Managers’ performance and to report such assessment to the Board of Regents, withmore formal evaluations to occur every two years. By taking into account relevant measures, thefollowing is the general measure established by the University:Composite ITF results should exceed the return of the two-year U.S. Treasury note.In fulfilling its fiduciary responsibility to periodically review and report to the Board of Regents theresults achieved by the Fund Investment Manager, the University will not base its judgments regarding amanager’s suitability solely on the results of a relatively short time period. This objective shall bemeasured over annualized, rolling one-, three-, and five-year time periods.In evaluating a manager, factors for consideration include, but are not limited to, substantive changesin investment strategy, portfolio structure, and market value of the assets, as well as significant changes inownership, organizational structure, financial conditions, and senior personnel staffing at the firm. TheFund Investment Manager shall meet regularly, or as reasonably expected, with interested partiesrepresenting the University and the Board of Regents.4.4.6 DUTIES AND RESPONSIBILITESThe University, as fiduciary, is responsible for the general administration of the ITF Account. Theseresponsibilities include the following specific duties, which may be undertaken by the University ordelegated to appropriate committees of the Board of Regents, staff, or outside parties:• Comply with and fulfill all aspects of pertinent state and federal laws, regulations, andrulings that relate to the investment process to ensure that fund assets are well managed.• Review and evaluate the results of the Fund Investment Managers against the establishedperformance standards, and review the manager structure to confirm the continuedsuitability of the managers, given the fund’s overall investment objectives and risk levels.• Take whatever corrective action is deemed prudent and appropriate when a FundInvestment Manager or any fiduciary fails to perform against established policy objectivesand guidelines.THE UNIVERSITY OF OKLAHOMA 228