Duties of the Investment Advisory Firm

ShareThis
Translate

The Subcommittee is authorized to engage the services of an Investment Advisory Firm, as defined under the Investment Advisors Act of 1940, to assist the Subcommittee in complying with their fiduciary responsibilities and to provide the specialized research and expertise to meet investment objectives and guidelines. Accordingly, the Subcommittee requires the Investment Advisory Firm to adhere to the "prudent man rule" and such other federal or state laws as may be applicable, or which may be applicable in the future. The duties of the Investment Advisory Firm include, but are not limited to the following:

  • Develop and monitor an asset allocation model consistent with the long-term investment objectives of the College; monitor endowment allocation and meet with College staff periodically to evaluate the need for rebalancing endowment portfolio;
  • Exercise complete investment discretion within the guidelines and objectives stated herein. Such discretion includes decisions to buy, hold, or sell securities / funds in amounts and proportions reflective of the Investment Advisory Firm’s allocation model and compatible with the objectives of the Fund assets;
  • Elect both traditional and non-traditional investment strategies for implementation of asset allocation model;
  • Conduct screenings of investment managers and keep College staff and Subcommittee on Investments apprised of changes in composition of or allocation to investment managers;
  • Act as primary contact with investment managers;
  • Monitor adherence with Investment Policy Statement as stated herein and make recommendations to Subcommittee on Investments when changes become necessary or opportunities for enhancement exist;
  • Measure investment performance based on relevant benchmarks and databases and prepare monthly performance updates and quarterly performance evaluation reports;
  • Provide the College Finance Office Staff and Subcommittee on Investments with timely information on the investment environment, industry trends, and other pertinent information regarding the security markets;
  • Hold meetings at least semi-annually with Subcommittee and College Finance Office Staff for the purpose of review of performance reports and asset allocation;
  • Inform the Subcommittee regarding all significant matters pertaining to the investment of the assets. The Subcommittee should be kept apprised of major changes in investment strategy, portfolio structure, market value of the assets, and other matters affecting the investment of assets.
  • Make adjustments to allocations and/or changes to or additions of managers or investments;
  • Rhodes may select to place the Endowment with a registered broker/dealer or bank that will serve as the custodian for funds and securities held in the Endowment. At no time will the Investment Advisory Firm have custody of College funds or securities, however, for all funds invested in the Investment Advisory Firm’s proprietary fund of funds, the Investment Advisory Firm’s affiliate will have custody of College funds through investments in affiliate’s funds.
  • In preparing reports and recommendations for Rhodes, the Investment Advisory Firm may rely upon any valuation provided by Rhodes’ qualified custodian, the manager or operator of any limited partnership, limited liability company or other pooled investment vehicle and shall not be required independently to investigate the propriety of any such valuation.  The College understands that quarterly valuations of private investment vehicles are generally unaudited and not independently valued, but reflect judgment by the manager or operator of the pooled investment vehicle.
  • Immediately inform the Subcommittee on Investments of any change in the firm’s ownership, including, but not limited to, merger, sale, partial sale, purchase, change in affiliation, or departure of principal or managing director.
  • Vote all proxies for the exclusive benefit of the Endowment Fund and maintain accurate voting records.

In effect February 14, 2008.
Vice President for Finance and Business Affairs.