13.3. Endowment Fund

The Board of Control of Michigan Technological University is aware of their responsibility to prudently manage endowment funds which are given to the University. It is assumed that endowment funds will have permanent life and that investment policies will be followed which will protect the principal of the funds and produce maximum total return without assuming irrational risks.

There are two distinct classes of endowment funds -- Institutional Funds and Annuity and Life Income Funds. The role of the various parties is different for each type and each type has different legal considerations. This policy covers the class "Institutional Funds." Michigan Technological University has no annuity and life income funds.

Institutional Funds. These are assets owned by Michigan Technological University and include endowment funds, term endowment funds, and funds functioning as endowments (quasi-endowment funds) as defined in the Higher Educational Finance Manual.

Endowment funds shall be invested in such a manner as to maximize total returns within an acceptable level of risk in order to keep pace with inflationary trends.

The Finance Committee, without further approval of the Board of Control, shall be responsible for the investment and reinvestment of funds and the purchase and sale of securities constituting the Endowment Fund of Michigan Technological University and shall, following the general philosophy statement, prescribe and approve the investment policies and guidelines for the Treasurer who shall act for the University.

Upon the recommendation of the Finance Committee and after approval by the Board of Control, moneys functioning as endowment funds may be invested in venture corporations.

The Board of Control shall receive reports from the Finance Committee at least semi-annually on the status of investment of Endowment Funds. The Board of Control shall receive any interim reports on changes in investments that the Finance Committee deems appropriate.