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 1.1% (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 70% equities, 20% bonds, and 10% alternative investments
Who are the investment managers?
- Bond Managers - Cavanaugh Capital and Wasmer and Schroeder Management
- Equity Managers - Key Bank, Northern Trust, and Private Capital Management
- Alternative Investment Managers - Behringer Harvard, Northern Trust, Wasmer and Schroeder, and Wells
How are the investment managers selected?
There is a three step process: The first step is submitting a bid; then they are interviewed by the Finance Committee; then they make a presentation to the Board; and then a final decision is made.
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 (June 30th for scholarships and December 31st for professorships and programs).
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