Financial Policies Overview
Overall, the SIUE Foundation follows an investment policy that is conservative, prudent, and fiscally sound. The Board’s Investment Committee, in accordance with the Investment Policy, works to balance the need for current funds with the need to preserve the “buying power” of the Foundation’s endowments. The Foundation’s holdings are invested according to category. The endowment pool and the planned giving assets are invested in both equities and fixed income instruments. The non-endowment pool, because of the necessity to have ready access to these funds, is only invested in fixed income instruments.
Endowments preserve the principal of the gift while providing income (earnings) for a program account specified by the donor(s). The annual earnings from the endowments are distributed in accordance with the endowment account’s classification. The distribution formulas may be changed at the direction of the SIUE Foundation Investment Committee.
Management Fees, Acceptance Fees and Retained Interest Policies
An annual investment management fee of 1.25% of the market values of the endowment pool and 2% of the non-endowment pool is assessed on the average balance which includes the investment management fees charged by the investment managers. The remainder of the management fee is used to support the general charitable purposes of the Foundation and for purposes of defraying its expenses. Investment income derived from the current restricted accounts on account balances less than $5,000 may be retained by the Foundation. Current restricted accounts do not included endowment, annuity funds, or donor-advised funds.
Investment Managers
The Foundation utilizes the consulting services of Hammond Associates for the Endowment investments. With recommendations and assistance from Hammond Associates, Endowment investments are managed by a diverse group of approximately seven investment managers. Non-endowed investments are managed by TheBANK of Edwardsville Financial Management Group in coordination with cash flow analysis provided by the Director of Financial Affairs. Planned Giving investments (donor advised funds and charitable gift annuities) are managed by TIAA-CREF Trust Company, who is under contract as the Foundation's Planned Giving Administrator.
