The website will soon adopt a new look and feel. Click here to preview this page.

5.4-10 ENDOWMENT FUND AND INVESTMENT INCOME

Purpose

The University has a fiduciary responsibility to attempt to maintain the purchasing power of endowment assets so that in the future sufficient earnings will exist to fulfill the objectives of the Endowment. Certain individual endowment accounts have assets which have a substantial cash position and are invested through the University's pooled cash investment program. Given that this objective is formally recognized, the following methodology will be used.

Board Policy

  1. Of the investment income allocated from Saginaw Valley State University's working capital investment pool to the Endowment Fund, 6% of the principal or 50% of the investment income allocated, whichever is greater, is to be utilized to fulfill the expenditure objectives of the individual endowment funds.
  2. The remainder of the investment income allocated from the working capital pool is to be allocated as an addition to principal for each of the individual funds to the Endowment Fund as "Funds Functioning as Endowments."
  3. Amounts within a "Fund Functioning as an Endowment" may be utilized by the Board of Control at a future date for an appropriate purpose as determined by the Board of Control in accordance with any agreement which established the endowment fund.

 

 

Adopted 10/12/81 BC