Support > Investment Policy

To establish guidelines and responsibilities for the investment of the KLRN Endowment Fund, Inc.’s assets which insure growth and future income.

Guiding Principles

• Although risk (i.e. uncertainty of future events), volatility (i.e. the potential for variability of asset values), and the possibility of loss of purchasing power (due to inflation) are present to some degree in all types of investment vehicles, high levels of risk are to be avoided, as evidenced by high volatility and low quality rated securities.
  
• Some assumption of risk is warranted in order to achieve satisfactory long-term results consistent with objectives and fiduciary character of the KLRN Endowment Fund, Inc.
  
• The portfolio should be well diversified to avoid undue exposure to any single economic sector, industry group, or individual security/investment.
  
  

Investment Responsibility

As stated in policy number 5 of the Policy Statement of KLRN Endowment Fund, Inc.:

The Investment Committee of the Board of Trustees of the Fund shall select a money manager to invest the assets of the Fund and shall provide guidelines for the money managers and shall review the performance of such money manager.

Additionally:

1. Performance results will be measured on a quarterly basis with investment performance being measured against commonly accepted benchmarks and to the extent which the results are consistent with the investment objectives, goals, and guidelines as set forth in this policy.
   
2. The Investment Committee reserves the right to change the money manager(s) if there is unacceptable justification for poor results; lack of responsiveness to the Committees’ overall concern about the market; failure to meet the Committee’s communication and reporting requirements; or in the Committee’s sole judgment, a change in money manager(s) would be beneficial to the Fund.
   
3. The Treasurer is authorized to sell or trade any security purchased pursuant to this resolution and that the authority vested in the Treasurer by this policy may be exercised in the Treasurer’s absence by the Assistant Treasurer, or other designee of the Treasurer.
   
4. The Treasurer is authorized to open accounts to deposit funds of the KLRN Endowment Fund, Inc., and close such accounts, in accordance with this investment policy.
   

Permitted Investments

In order to provide flexibility to invest in various types of assets, any assets that are readily marketable with a readily ascertainable market value that is not specifically prohibited and that is within the parameters of the guiding principles are approved for investment.

Investments Not Permitted

In order to avoid high levels of risk, investment in the following types of assets or transaction is expressly prohibited:

• Commodities
  
• Derivatives
  
• Purchasing of Securities on Margin
  
• Real Estate
  
• Selling Short
  
• Warrants
  
  

Donated Assets

The Investment Committee will determine the disposition of any assets that have been donated to the Fund which the Gift Acceptance Committee has accepted that are not within the guidelines of the policy on case by case basis.