Investments
Investment Philosophy
The Finance Committee is charged with the responsibility of maintaining and enhancing the Foundation's investments. The primary investment objective of the Finance Committee is the protection and preservation of the assets, while the secondary objective is the long term growth. As a result, the investment managers shall seek the highest possible return consistent with a prudent regard for legal considerations, fiduciary responsibility, and safety of capital.
Additional information regarding investment managers, asset allocation, disbursement policies, and administrative fees can be obtained by contacting Gerard Carrington, Director of Finance at 239-590-1073 or by e-mail at gcarring@fgcu.edu.
Frequently Asked Questions
What is the overhead charged by the institution against the endowed fund for managing the fund?
Currently 1.25% (the lowest in the state system)
What is the institution's investment policies and investment allocation? How much in stocks vs. bonds, etc?
Our target is 60% growth assets, 15% risk reduction assets, and 25% inflation protection assets
Who is the investment consultant?
Hammond Associates Institutional Fund Consultants, Inc.
What are the spending policies?
The spending policies are reviewed each year and our current policy is 5% of the three year rolling average of the market value of the fund.
Regarding spending, the Foundation disburses funds from a three year rolling average. For a new fund, is the first year distribution the full 5% or is it only 1/3 of 5%?
It is a three year rolling average, but we are averaging the balance of the fund, not the 5%. The first year would be 5% of the market value on the specified date of the previous year (December 31st) provided the fund has the net earnings for the distribution.
|
