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

June 22-23, 2004REGENTS’ FUNDQUARTERLY FINANCIAL REPORTMarch 31, 2004As of March 31, 2004, the Regents’ Fund consisted of 166 individual funds. The funds, under thegovernance of The Board of Regents of The University of Oklahoma, are preserved through investmentand spending strategies that provide a balance between reasonable current income and long-term growth.Future growth is needed to offset the impact of inflation and to maintain purchasing power for futuregenerations.I. Policy InformationDuring March 2004, the Boards investment manager for the CIF determined a change in boththe custodian and manager of the fixed income portfolio was required to better position the fixedincome allocation in the market place. This decision was made to improve performance in thecoming market cycles and in accordance with the Statement of Investment Policy. As a result of thechange in investment managers and the timing of the reinvestments, the asset allocation of the CIFwill not conform to the target allocation during this reporting cycle.• Highlights of the Statement of Investment Policy are described below.Target Asset AllocationAsset Class Minimum % Target % Maximum %U.S. Equities 40% 50% 60%International Equities 5% 10% 15%Fixed Income 35% 40% 45%Cash Equivalents 0% 0% 5%Performance Measurement and ObjectivesThe CIF is a long-term portfolio and should be judged with a long-term perspective. Whileshort-term performance measures are meaningful with respect to due diligence and periodicmonitoring of the fund, the performance of the CIF will be judged with the longest timehorizon perspective in mind.Absolute Return Objective - which shall be measured in real (i.e., net of inflation) rateof-returnterms and shall have the longest time horizon for measurement;The Absolute Return Objective of the CIF is to seek an average total annualreturn equal to CPI and other costs plus 5%.Relative Return Objective - which shall be measured as time-weighted rates of returnversus market index benchmarks; and,Comparative Return Objective - which shall measure performance as compared to auniverse of similar investment funds.1