Long-Term Investment Policy Summary

Board of Regents has ultimate responsibility for University's long-term investments:

  • Investment Policy is controlled by Regents & establishes return objectives, strategic allocations ranges, & spending policy.
  • Office of Investments formed in 2002 to manage long-term investments on campus.
  • Baylor Executive Investment Committee (BEIC) provides oversight of Investment Office.
  • Comprehensive reporting is provided to BEIC and Board of Regents.

Offce of Investments is charged with optimizing portfolio performance over long time horizon using consistent & disciplined investment approach:

  • Identify, underwrite, & monitor investments in funds run by managers experienced in each sector of portfolio.
  • Manage & report on strategic asset allocation ranges specified in Investment Policy.
  • Distribution of endowment income based on historical net asset value average & spending rate (currently 5.0% of previous 36 months average net asset values).
  • Minimum distribution shall equal the amount distributed from the previous year, and the maximum distribution shall not exceed 7% of previous 36 months average net asset values
  • New contributions to the endowment within a fiscal year participate in the distribution in the first month of the following fiscal year