
276.0 VIII-5.40 - POLICY ON MANAGEMENT OF THE ENDOWMENT FUND (Approved by the Board of Regents, June 21, 1990) 1. Article IX of the Bylaws of the Board of Regents of the University of Maryland System provides that the Finance Committee shall receive reports and recommendations from the University of Maryland System investment advisor and investment manager and provide recommendations to the Board of Regents regarding the endowment policies of the University of Maryland System. 2. The Chancellor shall recommend an investment advisor and investment managers for selection by the Board of Regents. 3. The Chancellor or designee shall coordinate the activities of the investment advisor and the investment managers throughout the year. 4. At a fall meeting, the investment advisor shall meet with the Finance Committee to accomplish the following: A. Present a brief summary of the policies of the Board of Regents that have been in effect for the reported period. B. Present the relative market valuations of the various asset classes. C. Review the reports of the investment manager for the year ended June 30, addressing specifically the balances maintained between the stock and the bond funds. It is expected that the University of Maryland System's actual results will be compared with leading performance indicators for similar funds and with the performances achieved by peer institutions. D. Make recommendations to the Committee related to long- term policies, changes in the balancing of the portfolios, and considerations related to the investment managers. 5. At a successive meeting, the investment managers shall meet with the Finance Committee to accomplish the following: A. Make presentations to the Committee on endowment fund investment performances for the year ended June 30. B. Present analyses of current and future market conditions. Replacement for: BOR V - 1.02