Ohio Administrative Code
Title 3361:20 - University of Cincinnati
Chapter 3361:20-41 - Investments
Section 3361:20-41-03 - Investments: investment committee
Universal Citation: OH Admin Code 3361:20-41-03
Current through all regulations passed and filed through September 16, 2024
(A) Purpose
(1) The investment committee shall oversee
the management of the university's endowment assets, subject to the investment
policies stated in rule 3361:20-41-01 of the Administrative Code, which include the university's obligations under the
uniform prudent management of institutional funds act of Ohio (UPMIFA), and
such supplementary guidelines as may be approved by the finance and
administration committee of the board of trustees.
(2) The investment committee shall oversee
the management of the university's temporary investment pool ("TIP") in
accordance with the provisions of section
3345.05 of the
Revised, policies stated in rule 3361:20-41-01 of the Administrative Code, and such supplementary guidelines as may be approved by the finance and administration committee of the board of trustees.
(B) Voting membership
(1) Voting membership of the
investment committee shall be no fewer than five and no more than ten persons,
at least two-thirds of whom shall be active in the field of investment
management, or have ten years' experience in the field of investment
management, and at least two-thirds of whom shall have a close affiliation with
the university. The field of investment management is defined by the work
experience guidelines for membership in CFA institute.
(2) The chairperson of the board of trustees
appoints members to the committee except as provided in paragraph (B) (3) of
this rule.
(3) So long as the
investments of the university of Cincinnati foundation are managed in one
or more
common investment pools with the
investments of the university of Cincinnati, the board of trustees of the
foundation may appoint the greater of three voting members of the committee, or
the number of members approximately proportionate to foundation investments in
the pools relative to total investments of the pools.
(4) Appointment terms are three years and
will not exceed three successive terms.
(5) In making appointments, the chairperson
of the board of trustees and the board of trustees of the university of
Cincinnati foundation will consider the recommendations of the chairperson of
the investment committee and the chief investment officer if those positions
have incumbents.
(C) Ex officio members
The president, at his or her discretion, may appoint any or all of the following as nonvoting members of the committee: himself or herself; the senior vice president for administration and finance; the vice president for finance; the chief financial officer of the university of Cincinnati foundation; the controller of the university of Cincinnati foundation; and any three other employees of the university or the university of Cincinnati foundation.
(D) Chairperson
(1) The chairperson of the committee will be
appointed from among the voting members by either the chairperson of the board
of trustees or the board of trustees of the university of Cincinnati
foundation, according to whether the university or the foundation has the
greatest portion of investments in the common investment pool.
(2) In the event of a tie vote on an issue
before the investment committee, the chairperson will cast the deciding
vote.
(E) Chief investment officer
(1) The chief investment
officer shall manage the university's endowment assets and that portion of the
university's TIP not managed by the treasurer with the guidance, advice and
oversight of the investment committee regarding policy and strategic
direction.
(2) In appointing the
chief investment officer, the president will consider the recommendations of
the investment committee, and the investment committee will provide assessment
of the performance of the chief investment officer to the senior vice president
for administration and finance.
(F) Treasurer
(1) The treasurer shall manage that portion
of the university's TIP needed to satisfy the day-to-day financial obligations
of the university in amounts determined by the treasurer with the guidance,
advice and oversight of the investment committee regarding policy and strategic
direction.
(2) The treasurer shall
be authorized to select, buy, and sell money market securities needed to invest
that portion of the university's TIP needed to satisfy the day-to-day financial
obligations of the university.
(G) Authorities
(1) Within the authority granted to the
investment committee and such supplementary guidelines as may be approved by
the investment committee, the chief investment officer, or his or her duly
appointed designee subject to the terms and conditions of any delegation of
authority, is authorized, without prior approval of the board of trustees or
the investment committee, to approve, execute or otherwise enter into contracts
or agreements, and modifications thereof and amendments thereto, and to take
other actions to:
(a) Retain the services of
specialized investment consultants for advice in asset allocation, performance
measurement and other services which may be of value in the management of the
university's endowment assets;
(b)
Retain investment managers;
(c)
Retain appraisers, brokers, consultants and such other financial advisers as
may be necessary or advisable in the performance of his or her
duties;
(d) Enter into custodial
arrangements for the safekeeping of endowment securities or other
assets;
(e) Buy or otherwise
acquire, hold and sell or otherwise dispose of investments, including
investment real estate, directly or through instructions to investment
managers; and
(f) Request
distributions from banks or other persons who act as third-party trustees for
funds of which the university is a beneficiary to the full extent provided by
law; and to correspond, communicate and, where applicable, give direction to
such trustees on investment policies, asset allocation, and all other
matters.
(2) The
signature of the chief investment officer will be conclusive evidence of his or
her authority to approve and execute any and all contracts, leases, deeds,
certificates, instruments, delegations, and other documents as may be necessary
or advisable to consummate transactions described in paragraph (F)(1) of this
rule, and other transactions approved by the investment committee.
(3) The signature of the designee of the
chief investment officer when accompanied by a written delegation of authority
executed by the chief investment officer, will be conclusive evidence of such
designee's authority to approve and execute such contracts, leases, deeds,
certificates, instruments and other documents described in such delegation,
during the absence, unavailability, or incapacity of the chief investment
officer.
(4) All delegations of
contracting authority by the chief investment officer pursuant to paragraph (F)
(1) of this rule shall be in writing, shall identify the delegate by name,
title and/or position of employment, shall describe the scope of the authority
provided by the delegation, shall bear the signature of the chief investment
officer, and shall expire on the earlier of:
(a) the date of expiration contained in the
written delegation,
(b) the date of
death or separation from employment with the university of the chief investment
officer making the delegation,
(c)
the date of death or separation from employment with the university of the
delegate,
(d) the date written
notice of revocation of the delegation signed by the chief investment officer
is delivered to the delegate, or
(e) the date that is three years from the
date of the delegation. The chief investment officer shall provide copies of
all such delegations to the board of trustees at the next regular meeting of
the board following any such the delegation. No person receiving a delegation
of authority from the chief investment officer may further assign or delegate
to any other person all or any part of the delegated authority. No delegation
of authority by the chief investment officer shall exceed the limits
established herein.
(5)
All contracts and other documents approved under paragraph (F) of this rule
will be reviewed as to form by the office of the general counsel, and the
signature of the chief investment officer will be conclusive evidence that such
review has taken place.
(H) The investment committee or the chief investment officer will report to the finance and administration committee of the board of trustees:
(1) Quarterly on
endowment fund investment performance;
(2) Annually on investment performance and
long-range goals of the endowment fund "A", endowment
fund "C", and of the university's TIP; and
(3) On other matters as the finance and
administration committee requests or as the investment committee deems
appropriate.
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