Investment Management
1. PURPOSE
The Brigham Young University–Hawaii (“BYU–Hawaii” or “university”) Investment Management Policy is established to align the university’s investment committee’s (“Committee”) activities with the Church Educational System’s (“CES”) Investment Oversight Committee’s (“IOC”) function of ensuring that financial resources are prudently managed and invested by Ensign Peak Advisors (“EPA”) in harmony with direction by the university’s Board of Trustees (“Board”).
2. POLICY
BYU–Hawaii shall operate the Committee to prudently invest resources with EPA, monitor investment performance, ensure appropriate internal controls and authorizations relating to investments and investment transactions, and periodically review endowment payout methodology and rates, and minimums for new endowments.
3. IMPLEMENTATION
3.1 Investment Committee Meetings
Meetings of the Committee shall be held at least twice annually, generally in May and November.
Agenda topics include:
- A review of the most recent EPA investment performance reports
- Ratification of any fund transfers to or divestment of funds from EPA
- Review of any new Board or IOC investment directives
- Review of any EPA market forecasts
- At least annually, a review of:
- University endowment payout methodology and rates
- Minimum requirement to establish a new endowment fund
- Other relevant investment information or topics as the need arises.
The university may routinely conduct other meetings with investment-related content for budget planning and financial review purposes in addition to the regular Committee meetings. These meetings would generally include a review of invested fund balances, such as gift, endowment, and auxiliary funds, as well as projections and historical expenditures.
3.2 Transfer of Investment Funds
Financial Services personnel (Gift Manager, Cash Manager, and Controller) regularly conduct a university cash needs analysis, as well as a review of excess cash available from invested funds (gifts, endowments, and auxiliaries). Then, based on that analysis, the Committee may initiate a request to transfer funds to, or to liquidate funds from EPA using an Investment/Withdrawal Request Form. Per EPA, transfers are limited to one transaction each month. Authorization to add or withdraw funds from EPA requires approval from at least two members of the Committee.
3.3 Internal Controls
Financial Services personnel annually update an audit investment narrative document (“Narrative”), which is reviewed by a controller, and provided to auditors of The Church of Jesus Christ of Latter-day Saints and external auditors. The Narrative lists all university investment processes, functions, transactions, and employees involved, including Committee members. Annually, auditors use the Narrative for testing internal controls and auditing university investment transactions.