2.73.03 Cash Pool Investment Policy
This Cash Pool Investment Policy ("Investment Policy") sets forth the general investment guidelines of the Wayne State University (("University" or "WSU") Cash Pool (the "Pool"). Cash account balances shall be pooled for investment purposes.
Policy guidelines may be amended by the Board of Governors (the "Board") upon their own initiative and/or upon consideration of the advice and recommendations of the Treasurer. Proposed modifications should be documented in writing to the Board.
|An Investment Advisory Committee ("Committee") shall be established to provide detailed oversight of the Pool. The Committee shall be comprised of the Treasurer, the Sr. Associate Vice President Finance, and the Assistant Treasurer. Additional qualified members may be asked to serve on the Committee at the discretion of the Treasurer.|
|2.73.03.020||STATEMENT OF GOALS AND OBJECTIVES|
The Treasurer shall invest the cash available in the Pool, effectively and efficiently balancing reasonable risk with expected returns, and ensuring adequate liquidity to meet the ongoing operating needs of the University. The Treasurer may utilize the services of investment consultants (either advisory or discretionary) and/or investment managers to ensure that these goals are met.
|The Cash Pool will be segregated into three tiers, with each tier having a separate asset allocation with targeted thresholds and/or ranges. Each tier is established with distinct objectives and eligible investments. The overall asset allocation targets and permissible ranges for eligible asset classes are detailed in Exhibit A ("Asset Allocation Policy"). Manager-specific benchmarks and policy exceptions are established by the Treasurer in conjunction with the University's investment consultant. The Treasurer, in conjunction with its investment consultant, shall establish an Investment Policy Statement ("IPS"). The IPS is intended to serve as a governing framework to guide the activities and decisions of the Committee, University staff and investment consultant. All investments within the associated investment pools will follow appropriate regulatory guidelines. No investment will be made in a portfolio which would, or might be reasonably expected to place the University's tax-exempt status under the Internal Revenue Code in jeopardy.|
|Notwithstanding the terms of this Investment Policy, when Pool assets are invested in commingled funds, which may include mutual funds, limited partnerships or limited liability companies, such assets shall be managed in accordance with the objectives, policies and restrictions set forth in the commingled funds' investment guidelines.|
|The Treasurer shall review the Asset Allocation Policy and approve both targets and acceptable ranges for each asset class annually, or more frequently if market conditions warrant. Thereafter, the Treasurer shall be responsible for reviewing the actual asset allocation versus the target asset allocation. Every quarter, staff, in conjunction with its investment consultant will rebalance any asset class that has fallen outside its acceptable range to within the permissible range, subject to the liquidity needs of the ongoing operations of the University.|
ROLES AND RESPONSIBILITIES
|2.73.03.60||Board of Governors|
The Board shall be responsible for reviewing and approving this Investment Policy and Asset Allocation for the Pool.
The Treasurer will provide overall direction to the investment consultant and University staff in the execution of the Investment Policy. The Treasurer is responsible for overseeing the operations of the Pool. These responsiblities include (1) evaluating, hiring, and terminating investment managers (these functions may be assumed by an investment consultant if that consultant has discretionary authority), custodian banks and consultants, (2) proposing revisions to the statement of goals and objectives to reflect modifications and revisions to the Pool, which may occur from time to time, and (3) submitting all revisions to the Board for approval. The Treasurer and/or investment consultant will communicate any material change to this policy to investment managers.
All monies invested for the Wayne State University Cash Pool by its investment managers after the adoption of this Investment Policy shall conform to this policy.
|EXHIBIT A||ASSET ALLOCATION POLICY|