Investment Policy

Role of the Finance and Investment Committee

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The CSULB 49er Foundation Endowment was created to provide perpetual financial support to California State University, Long Beach. The Finance & Investment Committee  is acting in a fiduciary capacity with respect to the Portfolio and is accountable to the Executive Committee and Board of Directors for overseeing the investment of all assets owned by, or held in trust for, the Portfolio.

  • This Foundation Investment Policy Statement sets forth the investment objectives, distribution policies, and investment guidelines that govern the activities of the Committee.
  • The Foundation investment policies contained herein are consistent with the University’s anticipated financial needs and in consideration of the University’s tolerance for assuming investment risk, as reflected in the majority opinion of the Committee.
  • Policies contained in this statement are intended to provide guidelines, where necessary, for ensuring that the Portfolio’s investments are managed consistent with the short-term and long-term goals of the Foundation.  At the same time, they are intended to provide for sufficient investment flexibility in the face of changes in capital market conditions and in the financial circumstances of the University.
  • The Committee will review this Investment Policy Statement at least once per year.  Changes to the Investment Policy Statement can be made only by affirmation of a majority of the Committee, and written confirmation of the changes will be provided to all Committee members and to any other parties hired on behalf of the Portfolio as soon thereafter as is practical

Investment Objective

The Foundation seeks to protect the long-term viability of its endowment by investing in both short- and long-term investments.  The Foundation seeks to have a total return that provides for the annual spending policy disbursement and inflation protection, and any excess return will be allocated to the individual funds that constitute the endowment.  The spending policy was determined in consideration of the Foundation’s long-term, historical rate of return.

Long Range Investment Objectives and Policy Statement for Foundation Pooled Assets

Purpose

The purpose of this statement is to establish a clear understanding between the 49er Foundation and Investment Consultant(s) of the investment policies and objectives of managing assets. This statement outlines an overall philosophy that is specific enough for the Consultant to know what is expected, but sufficiently flexible to allow for changing economic conditions and dynamic securities markets.  This statement provides realistic risk policies to guide the Consultant toward long-term rate of return objectives which serve as standards for evaluating investment performance. This statement establishes the investment restrictions placed upon the Consultant and outlines procedures for policy and performance review.

The long range investment goal of the Foundation is to achieve a maximum rate of return on assets consistent with prudent investment management. This policy, which emphasizes preservation of capital, should enhance “real” asset value and provide liquidity sufficient to meet unexpected cash needs.  “Real” asset value is defined as protection of the investment principal from its loss of purchasing power over time.

 

 

 

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