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This website publishes administrative rules on their effective dates, as designated by the adopting state agencies, colleges, and universities.

Chapter 3362-1 | Board of Trustees

 
 
 
Rule
Rule 3362-1-01 | Bylaws of the board of trustees.
 

(A) Members of the board of trustees

Shawnee state university is governed by its board of trustees and the members of the board are appointed by the governor, in accordance with section 3362.01 of the Revised Code. In accordance with Ohio law, student trustees do not have voting authority, although their opinions and advice during deliberations are encouraged.

(B) Officers of the board of trustees and their duties

(1) At its last regular meeting of each fiscal year, the board shall elect a chairperson and vice chairperson for the next fiscal year. The terms of those elected will commence at the start of next fiscal year. At the board's discretion, the board may elect a chair and/or vice chair to serve a term of one fiscal year or two fiscal years. Regardless of the length of appointment, a chair's or vice chair's term will extend beyond the designated expiration date in instances where a successor has not yet been elected. However, under no circumstances may a chair's or vice chair's term extend beyond the individual's term as trustee.

(2) The chairperson shall preside at all meetings of the board and shall decide all questions of order. It shall be the chairperson's duty to see that the board's bylaws are properly followed and its orders properly executed. The chairperson shall, on behalf of and in the name of the university and the board, sign all instruments authorized by the board, except as such duties may be delegated to administrative officers.

(3) In the absence of the chairperson, the vice chairperson shall be invested with the powers and discharge the duties of the chairperson. In the absence of the chairperson and the vice chairperson, the duties of chairperson will be discharged by the trustee in the following order: chairperson of the finance and administration committee; chairperson of the academic and student affairs committee; vice chairperson of the finance and administration committee; and vice chairperson of the academic and student affairs committee.

(C) President's role at board of trustee meetings

The president is expected to attend all board and committee meetings, including executive sessions, unless directed otherwise by the board. At such meetings, the president will, in an advisory role, have a voice in board deliberations and have the authority to initiate any subject.

(D) Secretary of the board

(1) The board may appoint a secretary of the board. The secretary may, if not a member of the board, hold an administrative position with the university. The secretary shall be responsible for ensuring that meeting notices are provided in accordance with Ohio law. The secretary shall also be custodian of all board records and shall attest as required, by his or her signature, all instruments executed by the chairperson or other authorized person on behalf and in the name of the university and the board.

(2) The secretary shall be responsible for preparing accurate minutes of all board meetings and of committee meetings as needed.

(3) The secretary may, if called upon by the board chairperson, serve as board parliamentarian.

(4) The board may also appoint an assistant secretary, who may be a member of the board or hold an administrative position with the university. The assistant secretary shall be responsible for preparing accurate minutes of board meetings and committee meetings, as needed, when the secretary is not in attendance at such meetings. The assistant secretary may also perform other duties set forth in paragraphs (D)(1) to (D)(3) of this rule when the secretary is on an extended absence from his or her employment.

(5) The secretary and assistant secretary serve at the pleasure of the board.

(E) Treasurer of the board

The board may appoint a treasurer of the board to take custody and control of all monies due and owing to the university and to properly account for all monies coming into his or her care and the expenditures of said monies on behalf of the university. The treasurer may, if not a member of the board, hold an administrative position with the university. The treasurer's appointment is continuing but may be terminated at any time, with or without cause, by the board. The treasurer will be bonded or insured for faithful performance of his or her duties in conformance with section 3362.02 of the Revised Code.

(F) Board of trustees committees

(1) Standing committees of the board consisting of no fewer than three members each shall be appointed yearly by the chairperson of the board. The chairperson shall also appoint new members to committees any time a vacancy occurs. Committee chairpersons and vice chairpersons shall be appointed by the chairperson of the board. Matters considered and recommended by any standing committee for board approval, including any board or university policy, shall be brought to the board in the form of a resolution.

(2) A majority of a committee's voting members constitutes a quorum. In the event a majority of the voting members are not present in person or through electronic communication (see paragraph (J) of this rule) to take committee action, a quorum may be established with at least one voting member of the committee plus any two additional voting members of the board. The board chairperson, when present at the committee meeting, has authority to make such temporary appointment(s). If the chairperson is not present, the priority for making temporary appointment(s) shall be as follows when such individual is present: board vice chairperson, chair of the committee, vice chair of the committee, chair of another standing committee. The authority to make temporary appointments under this paragraph applies regardless of whether the individual authorized to make the appointment is present in person or through electronic communication.

(3) The academic and student affairs committee shall consider and make recommendations to the board on matters pertaining to academic and student affairs programs and resources. Specific matters that may be presented to the academic and student affairs committee include, but are not limited to, the following: proposed and existing degree programs; awarding of degrees; commencement and other major university events; research and community development; faculty and staff matters including faculty promotions, organizational structures for academics and student affairs; and other matters as assigned to the committee by the board or chairperson of the board.

(4) The finance and administration committee shall consider and make recommendations to the board on matters pertaining to financial, business, facilities and administration of the university. Specific matters that may be presented to the finance and administration committee include, but are not limited to, the following: university capital and operating budgets; submission of appropriation and capital requests; tuition and student fees; annual audits; business organization and practices; borrowing and investment of funds; facilities and grounds, including naming, planning, construction, and maintenance; real property matters; purchasing policies; organization and staffing of finance and administration; personnel policies and matters; safety and security; information technology; auxiliary operations and services; and other matters as assigned to the committee by the board or chairperson of the board.

(5) The executive committee shall be comprised of the board chairperson (serving as chairperson), board vice chairperson, immediate past board chairperson, and the chairpersons of the committees on academic and student affairs, and finance and administration. In the event either or both the chairperson and vice chairperson of the board also chairs a committee, the board chairperson may appoint an additional board member(s) to the executive committee. In the event that the past board chairperson is no longer a member of the board, the board chairperson shall appoint a sitting board member to fill what would have been the past chairperson's position. The executive committee shall consider and make recommendations to the board on the following matters: proposed university policies on matters not assigned to another committee; bargaining unit agreements; and personnel actions that pertain to any of the vice presidents, senior executives, or other personnel requested by the president or chairperson of the board. The executive committee shall also have responsibility for: orienting and mentoring new board members; evaluating the performance of the president and make a recommendation to the board on the president's compensation and benefits package. The executive committee shall also act/recommend on behalf of the board on issues needing immediate attention and report such actions to the board. To act on behalf of the board, a quorum of the executive committee (three members), which may include temporary appointments pursuant to paragraph (F)(2) of this rule, must be present in person or by electronic communication. Executive committee actions taken on behalf of the board shall be reported to the board and made a part of the official record by including such action in the record of the next regularly scheduled board meeting. Any meeting of the Executive committee at which binding action is taken shall adhere to all applicable provisions of section 121.22 of the Revised Code, the open meetings law and section 3345.82 of the Revised Code, electronic attendance of board of trustees' meetings.

(6) The chairperson of the board shall be a voting member of the board, the executive committee, and one other standing committee and an ex-officio (non-voting) member of all other committees.

(7) The president will appoint at least one vice president, senior executive, or other appropriate administrative personnel to staff the academic and student affairs committee and the finance and administration committee.

(8) As used in paragraph (F) of this rule, senior executive, shall mean the chief financial officer, chief operating officer, chief of staff, chief enrollment officer, chief advancement officer, and any other vice president or chief-level positions created in the future.

(G) Meetings of the board of trustees

(1) The board of trustees shall comply with all provisions of the Ohio open meetings law set forth in section 121.22 of the Revised Code. The secretary shall be responsible for ensuring that all required notifications are issued. Any person desiring specific notification of board meetings may request copies of board agendas upon providing a self- addressed stamped envelope to the secretary, or by providing an email address to which agendas may be sent electronically.

(2) Meetings

(a) The annual organizational meeting of the board is its last regularly scheduled meeting of the fiscal year. Other regular meetings will be scheduled and posted for public notice at least five days in advance.

(b) Special meetings may be held upon the call of the chairperson or upon written request to the secretary by three or more board members. The secretary or his/her designee shall provide notice of special meetings, including the time, location, and purpose of the special meeting, not less than twenty-four hours in advance to all media outlets that have requested such notification, except in the case of an emergency that requires immediate official action. When a special meeting is a rescheduled regular meeting, the meeting's purpose may be for general purposes.

(c) Emergency meetings. When a situation requires immediate board action and twenty-four hours'advance notice is not possible or practicable, the secretary or his/her designee shall immediately notify all media outlets that have specifically requested such notice of the time, place and purpose of the emergency meeting.

(d) A majority of the then-current membership of the board, when duly convened, shall constitute a quorum to do business, and a majority vote of those present in person or by electronic communication shall be sufficient to adopt any motion or resolution, provided that the vote of no fewer than five members shall be necessary to make or confirm the making of any contract involving the expenditure of money not provided for in the annual budget; to adopt and revise the annual budget; and to amend or repeal previously adopted policies or bylaws of the board.

(e) A roll call vote shall be taken whenever any member is present through electronic communication. When all members in attendance are present in person, a roll call vote shall be taken whenever directed by the chairperson or requested by two members of the board and shall be necessary when electing or removing a president.

(3) Order of business

(a) The usual order of business at board meetings shall be as follows:

(i) Call to order

(ii) Roll call

(iii) Approval of minutes

(iv) Approval of agenda

(v) Consent agenda

(vi) Committee reports

(vii) Non-consent action items

(viii) Reports, if any, from board liaisons with other organizations

(ix) President's report

(x) New business

(xi) Comments from constituent groups (if any) and the public

(xii) Executive session, if necessary

(xiii) Other business

(xiv) Adjournment

(b) Business to be considered.

The president is responsible for development of the agenda for the chairperson's final approval. Any proposed action or business item by a board member should be presented to other board members and the president at least five days prior to the board meeting.

(c) Consent agenda

Items requiring a decision that are expected to require no discussion or debate by the board may be presented as a consent agenda as part of the agenda described in paragraph (G)(3)(b) of this rule. Items may be removed from the consent agenda on the request of any board member and without a motion or vote. Removed items may be taken up by the board either immediately after the consent agenda or placed later on the agenda at the discretion of the chairperson. Items not removed may be adopted by general consent and in accordance with paragraphs (G)(2)(d) to (G)(2)(e) of this rule. Consent agenda items may include items recommended to the board by any of the standing committees of the board, except for any items that involve the expenditure of money not provided for in the annual budget, or adoption or revision of the annual budget.

(4) Public and constituent participation

It is the policy of the board to require persons who wish to address the board in the comment portion of the board meeting to limit their remarks to no more than five minutes and to speak at the appropriate time during the agenda. The chairperson may institute a sign-in process for persons who wish to speak and also limit the number of speakers commenting on any one subject. The board may or may not respond to speakers' comments.

(5) Parliamentary rules

The proceedings of the board, when not otherwise provided for by its rules, shall be governed by the most current edition of "Robert's Rules of Order." Any motion shall be reduced to writing upon the request of a member.

(6) Recording meetings

Members of the public and the news media may record public sessions of board and committee meetings. Use of recording devices may not interfere with the meeting or other attendees' view or hearing of the proceedings. Any recording devices must be fixed to one location in the room throughout the meeting. No flashes or other light enhancing devices may be used. The location of recording devices will be determined by the chairperson prior to the meeting. Where multiple parties desire to record the meeting, the chairperson may limit the number of recording devices in the meeting to no more than two.

(H) The president of the university

(1) Serving at the pleasure of the board of trustees, the president is the chief executive officer of the university.

(2) The president is responsible for recommending policies to the board and for implementing those policies approved by the board. The president must provide leadership in establishing a vision and goals to guide the university in fulfilling its mission. While the board has the ultimate responsibility for the governance of the institution to ensure its proper maintenance and successful and continuous operation, it is the president's responsibility to execute board policies and administer the university to fulfill its mission. Specific responsibilities of the president include, but are not limited to, the following:

(a) Administer board policies to achieve the institutional mission.

(b) Direct strategic and short-range planning.

(c) Develop, maintain and evaluate academic programs in furtherance of the university's mission.

(d) Develop and maintain an administrative organization and governance structure to facilitate both input into policy development and effective utilization of the resources required to achieve the university's goals and mission.

(e) Develop and maintain a system that will receive, screen and recommend for employment the most qualified personnel required to carry out the mission of the university. In addition, this system must address the assignment, supervision, evaluation and promotion of personnel employed by the university.

(f) Plan and develop a process to secure and maintain the resources necessary to achieve the university's mission at the highest level of quality. This responsibility shall include the presentation of these needs before the Ohio department of higher education, the governor's office, and the legislature.

(g) Prepare and present for board of trustees approval the annual operating and capital budgets; in addition, make budgetary allocations and supervise the expenditure of all funds.

(h) Present for board of trustees approval matters that are required by law or university policy to be presented to the board.

(i) Develop and maintain facilities and equipment required to support the mission of the university.

(j) Communicate to the board the current condition and potential problems facing the university.

(k) Represent the university before external public and private sector constituencies.

(3) The president will be evaluated by the board according to rule 3362-1-03 of the Administrative Code.

(I) Adoption, amendment, and repeal of bylaws and of university policy and procedures

(1) The foregoing bylaws are intended to provide a general framework for the administration, and operation of the university. Detailed policies and procedures for the organization, administration, and operation of the university may be adopted, amended, and repealed by the board of trustees or president as specified in rule 3362-1-05 of the Administrative Code.

(2) The adoption, repeal, or amendment of bylaws requires the affirmative vote of five or more members at a regular meeting of the board, providing that notice of the meeting specifies that adoption, amendment, or repeal of the bylaws is to be considered.

(J) Participation by electronic communication

(1) To the extent permitted by Ohio law and in accordance with paragraphs (J)(2) to (J)(4) of this rule, members of the board of trustees may participate in board meetings or committee meetings by electronic communication when it is impossible or difficult for them to be physically present at the meeting. Electronic communication means live, audio-enabled communication that permits the trustees attending a meeting, the trustees present in person at the place where the meeting is conducted, and all members of the public present in person at the place where the meeting is conducted to simultaneously communicate with each other during the meeting.

(2) A member's attendance at a board or committee meeting by electronic communication is subject to the following limitations:

(a) Each member of the board shall be present in person at the place where the meeting is conducted for not less than one-half of the board meetings annually.

(b) At least one-third of trustees attending each board meeting shall be present in person at the place where the meeting is conducted.

(c) Any trustee who intends to attend a meeting by means of electronic communication shall notify the board chairperson of that intent not less than forty-eight hours before the meeting, except in case of a declared emergency.

(3) Except as provided in paragraphs (J)(2)(a) to (J)(2)(c) of this rule:

(a) There shall be no additional limits on the number of trustees who may attend a meeting by means of electronic communication;

(b) There shall be no limit on the number of meetings that the board may conduct by means of electronic communication;

(c) There shall be no further limits on the number of meetings in which any one trustee may attend by electronic communication; and

(d) No additional limits or obligations shall be placed on any trustee because they attend a meeting by means of electronic communication.

(4) Provided that the requirements of paragraphs (J)(2)(a) to (J)(2)(c) of this rule are satisfied, a trustee who attends a meeting by means of electronic communication shall be considered present at the meeting, shall be counted for quorum purposes, and may vote at the meeting.

(5) When one or more trustees attends a board or board committee meeting by means of electronic communication, all votes taken at that meeting will be by roll call vote.

(K) Trustee emeritus

The board may grant emeritus status to a board member whose term has ended, is about to end, or who departed from the board in good standing and had, during the member's board term, made an exemplary contribution to the board. Nominations may be made by any current board member in writing to the chairperson of the board or to the president and should fully describe the reasons for the nomination. A grant of trustee emeritus status requires approval of a resolution by a majority of board members at a meeting in which a quorum is present in person or by electronic communication. A trustee emeritus is an honorary title, without compensation, and, unless compelling circumstances arise that affect the integrity of the institution, the title is a life time honor. A majority of two-thirds of the board is necessary to remove an emeritus status.

Last updated October 3, 2024 at 8:51 AM

Supplemental Information

Authorized By: 3362.03
Amplifies: 3362.03
Prior Effective Dates: 5/4/1992, 3/30/2009, 5/12/2014
Rule 3362-1-03 | Evaluation of the president.
 

(A) Purpose

(1) The board of trustees is charged by the Revised Code to employ and compensate the university president. It is therefore the board's responsibility to periodically evaluate the president to insure that the president is providing effective leadership and performing at the highest level.

(2) The purposes of the board's evaluation of the president are as follows:

(a) To assess the effectiveness of the president;

(b) To enable the board and president to establish and evaluate mutually agreed-upon goals and objectives;

(c) To facilitate the president's continuing professional development; and

(d) To determine appropriate compensation adjustments and other terms of employment.

(B) The evaluation process and time frame

(1) The executive committee of the board of trustees shall conduct an annual performance evaluation of the president that follows a process established by the chairperson of the board and includes input from the president. The executive committee may, at its discretion, solicit viewpoints of internal and external constituencies and stakeholders.

(2) At least once during each contract term and before another contract is negotiated or extended, the executive committee is encouraged to conduct a comprehensive performance review (three sixty degree review) using an external entity.

(3) Upon completion of its performance evaluation of the president, the executive committee shall report the evaluation results and make recommendations to the full board. The recommendations may include compensation adjustments and other employment terms, as deemed appropriate. Any compensation adjustment or other employment term that modifies the president's employment agreement shall require full board approval.

(C) Written management letter and stakeholder communications

(1) Within thirty days after the full board has reviewed the results and recommendations of the executive committee's report, the board chairperson shall issue a written management letter to the president confirming agreed upon goals.

(2) The board chairperson is responsible for communicating with identified stakeholders regarding the evaluation review process and its outcomes, if appropriate.

(D) Execution of the president's employment contract

The board chairperson, acting on behalf of the board, shall execute any new or amended presidential employment contract(s) as required as a result of this process.

Last updated October 11, 2024 at 2:11 PM

Supplemental Information

Authorized By: 3362..03
Amplifies: 3362.03
Prior Effective Dates: 5/14/2008
Rule 3362-1-04 | Honorary degrees.
 

(A) Purpose

Awarding an honorary degree indicates the high esteem in which the Shawnee state university board of trustees holds the recipient. To assure that only the most worthy or appropriate individuals receive honorary degrees, the following criteria and processes will be followed.

(B) Criteria for awarding honorary degrees

(1) The board of trustees may award honorary degrees to individuals who have made significant contributions to higher education and scholarship, to the university and its mission, and/or to the state of Ohio. Attributes that nominees shall exhibit should include at least one of the following:

(a) The nominee has some attachment or connection to the university and/or the state of Ohio.

(b) The nominee has a statewide, national, and/or worldwide recognition.

(c) The nominee has made significant contributions to the advancement or promotion of knowledge and/or the university mission.

(C) Limitation on eligibility

Current university trustees and employees are not eligible to receive honorary degrees.

(D) Degrees awarded

(1) The following honorary degrees may awarded:

(a) L.L.D. doctor of laws

(b) Litt. D. doctor of letters

(c) Sc.D. doctor of science

(d) L.H.D. doctor of humane letters

(e) Ph.D. doctor of philosophy

(E) Nominations

(1) Any university governance body may nominate individuals for an honorary degree. The president may review and recommend nominations to the board of trustees.

(2) Nominations must include a detailed description of the nominee and justification for awarding an honorary degree. The board of trustees reserves the right to nominate and approve candidates for honorary degrees.

(F) Board action

The final decision to award an honorary degree rests with the board of trustees.

Last updated October 11, 2024 at 2:12 PM

Supplemental Information

Authorized By: 3362.03
Amplifies: 3362.03
Prior Effective Dates: 6/5/2001
Rule 3362-1-05 | Investment policy.
 

(A) Purpose

(1) The Shawnee state university board of trustees has title to university investments and these funds are held in trust. The investments are to be made consistent with this investment policy as set forth in this rule.

(2) All fiduciaries implementing this investment policy are required to discharge their duties with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like aims.

(B) Membership and duties

(1) The membership of the investment committee shall be as follows:

(a) The university's chief financial officer or his/her delegate shall serve as a permanent member of the committee.

(b) The university controller or his/her delegate shall serve as a permanent member of the committee.

(c) The chair of the board of trustees shall appoint a chair of the investment committee from among the members of the board's finance and administration committee. The chair of the investment committee shall serve in that role for a term of one fiscal year, which is renewable at the discretion of the chair of the board.

(d) In addition to the members discussed in paragraphs (B)(1)(a) to (B)(1)(c) of this rule, there shall be three additional members. Each such additional member shall be appointed in staggered three-year terms, which are renewable as set forth in paragraph (B)(1)(f) of this rule. Existing members at the time of this amendment shall serve out the remainder of their terms, and are eligible for renewal.

(e) The chair of the investment committee shall make recommendations on replacing a member at the end of a term, renewing a member's term, and appointing a member to fill a vacancy during a term. All such renewal recommendations and nominees recommended by the investment committee chair are subject to approval by the board of trustees.

(2) The investment committee shall meet at least quarterly.

(3) The investment committee shall review and recommend revision to this investment rule and advise the Shawnee state university board of trustees through its finance and administration committee on its investments.

(4) The investment committee is authorized to retain an investment advisor that meets the credential criteria as outlined in law.

(5) Upon appointment, each investment committee member will sign an agreement indicating that they will avoid conflicts of interest in performing their duties as committee members.

(C) Investment objective

The primary objectives of the university's investment activities are:

(1) Safety: Assets of the university shall be handled in a manner that diversifies investments so as to mitigate the magnitude of potential capital loss inherent in investment risk.

(2) Return on investment: to have, over time, return net-of-fees that at least equals common indexes in capital markets in which the university's assets are invested.

(D) Investment allocation

(1) A minimum of twenty-five per cent of the prior fiscal year's average investment portfolio will be invested in securities of the United States government or of its agencies or instrumentalities, the treasurer of state's pooled investment program, obligations of this state or any political subdivision of this state, certificates of deposit of any national bank located in this state, written repurchase agreements with any eligible Ohio financial institution that is a member of the federal reserve system or federal home loan bank, money market funds, or bankers acceptances maturing in two hundred seventy days or less which are eligible for purchase by the federal reserve system, as a reserve. The actual percentage may be higher than this figure dependent upon anticipated cash flow needs with some buffer for unanticipated needs as determined by paragraph (D)(4) of this rule.

(2) Investments shall be made in a liquid pool and a diversified investment pool.

(a) The administration of the liquid investment pool is to remain with the Shawnee state university finance office as an agent of the investment committee. Returns will be reported quarterly to the investment committee and the board of trustees.

(b) The diversified investment pool will be invested in publicly traded securities with the following ranges of asset allocation within that pool:

Target allocation Range
Total Equity50%40% to 60%
Large Cap35%
Mid and Small Cap10%
International5%
Total Fixed Income48%39% to 60%
Cash2%1% to 30%
Alternative Assets0%0% to 5%

(c) The chief financial officer or delegate has authority to allocate funds between these pools.

(d) Asset target allocations will be reviewed with the investment committee not less than on an annual basis for critical changes that will recognize the university's long term financial needs and be responsive to investment market conditions.

(3) The university may transfer a portion of the diversified investment pool to the liquid investment pool as follows:

(a) The university may transfer up to two point five per cent times the diversified investment pool's previous twelve quarter moving average of market value from the diversified investment pool to the liquid investment pool.

(b) This calculation will be applied to the twelve quarters ending on December thirty-one of the current fiscal year so the level of additional funding will be available during the subsequent year's budgeting process.

(c) The amount eligible to be transferred may be moved as a lump sum or periodically during the fiscal year but the total of the transfer(s) may not exceed the original calculated amount (other than for exceptions noted in other sections of the investment rule).

(d) The chief financial officer will recommend the amount (and the related investment accounts from which the funds will be withdrawn) of eligible funds to be transferred from the diversified investment pool to the liquid investment pool based on the university's anticipated cash needs and consultation with the university's investment consultant. The transfer will require the approval of the university president and will subsequently be reported to the investment committee and the board of trustees at their respective meetings following the transfer.

(4) The chief financial officer may request a transfer to or from the diversified investment pool to either the liquid investment pool or the university's main operating checking account outside of the formula restrictions noted in paragraph (D)(3) of this rule based on unanticipated cash needs of the university. Based upon the amount of the request, the recommendation will require approval as follows:

(a) Requested transfer amount: Requires approval from:

$1 to $1,000,000 Chief financial officer
$1,000,001 to $2,500,000 University president
$2,500,001 to $5,000,000Chair, Shawnee state university board of trustees

(b) The transfer will also be reported to the investment committee and the board of trustees at their respective meetings following any transfer.

(E) Investment securities diversification and quality

(1) No more than five per cent of the diversified investment pool portfolio shall be invested in any single issue except u. s. government securities.

(2) Investment in fixed income securities shall be limited to government and agency issues and other issues in the top four quality ratings of recognized credit services. Prohibited investments include bonds rated below investment grade and investment funds in which derivatives comprise a substantial part.

(F) Alternative investments

Inclusion of alternative investments is at the discretion of the investment committee. Alternative investment categories may include: gold and other commodities.

(G) Market benchmarks

(1) Given short-term market fluctuations, it is intended that investment manager(s) will achieve the performance objectives over a five-year moving period, net of investment fees, set forth in paragraph (G)(2) of this rule. It is understood that performance evaluation will occur in shorter intervals, the results of which may cause the investment committee to make an investment manager change.

(2) Policy benchmarks will be established by the investment committee as needed but no less than on an annual basis and subsequently communicated to the board of trustees upon adoption.

(3) In evaluating the investment manager's performance, relative to the established benchmarks, any university requested revisions of the asset allocations will be taken into consideration.

(H) Evaluation of investment managers

Investment managers will be reviewed quarterly based upon the following criteria:

(1) Ability to exceed the performance objectives stated in this policy.

(2) Adherence to the philosophy and style that were articulated to the investment committee at, or subsequent to, the time an investment manager was retained.

(3) Ability to exceed the investment performance (net of fees) of other investment managers who adhere to the same or similar style.

(4) Continuity of personnel and practices at the firm.

Last updated December 15, 2023 at 3:25 PM

Supplemental Information

Authorized By: 3362.03
Amplifies: 3362.03
Prior Effective Dates: 4/22/2019