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Financial Policies Overview

Investment Policy  pdf

Overall, the SIUE Foundation follows an investment policy that is conservative, prudent, and fiscally sound. The Board’s Finance and 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 both in equities and in fixed-income instruments.The non-endowment pool, because of the necessity to have ready access to these funds, is limited to a 40% allocation to equity investments, with the remainder invested in fixed income instruments.

Distribution of Earnings Policy  pdf

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 donor's intended purpose and the endowment account’s classification. The distribution policy may be changed at the direction of the SIUE Foundation Finance and Investment Committee.

Management Fees and Retained Interest Policies

An annual investment management fee of 1.25% of the market values of the 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 is retained by the Foundation. Current restricted accounts do not include endowments or Charitable Gift Annuity funds.

Investment Managers

The Foundation utilizes the consulting services of Hammond Mercer for the endowment investments. With recommendations and assistance from Hammond Mercer, endowment investments are managed by a diverse group of investment managers with Charles Schwab serving as custodian. Non-endowed investments are managed by TheBANK of Edwardsville Investor Group in coordination with cash flow analysis provided by the Department of Financial Affairs.Planned Giving investments (charitable gift annuities) are also managed by TheBANK of Edwardsville Investor Group, who is under contract as the Foundation’s Planned Giving Administrator.

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