Policy 13A: University Investments

1. Purpose

Under this policy, the Board of Regents authorizes the Treasurer of the University to manage and invest the financial assets within the described limits.

2. Policy

The Treasurer of the University shall invest the university’s financial assets primarily in cash equivalents, debt instruments, equities, and alternative strategies, using external managers and commingled and mutual funds, including the University of Colorado Foundation’s Long Term Investment Pool, where appropriate, with advice from the University Investment Advisory Committee, according to the following:

  • The Prudent Investor Rule within the Colorado Uniform Prudent Investor Act;
  • The Uniform Prudent Management of Institutional Funds Act;
  • Applicable federal and state laws and regulations; and
  • Regent laws, policies, and resolutions. Examples of  these resolutions are:
    1. institutional neutrality (South African and other investments), and
    2. Sudan divestment.

For each operating and non-operating fund for which discretion over investments lies with the university, the Treasurer of the University shall develop written guidelines which:

  • Document the purpose of the portfolio and the use of earnings thereon;
  • Specify the appropriate time horizon and risk profile;
  • Establish diversification limits by asset class, sector, industry, and issuer;
  • Communicate other restrictions and limits;
  • Inform the reader of the desired balance between safety, liquidity, and yield;
  • Select performance benchmarks and explain their use in the review processes;
  • If employed, document securities lending limits and goals;
  • For the operating funds known as the University Treasury Pool, establish adequate earnings distribution and stabilization reserves; and
  • Set in writing the process used to periodically review the investment strategy and the guidelines.

Members of the university’s Investment Advisory Committee shall be chosen by the Treasurer of the University in consultation with the vice president for budget and finance. There shall be at least five members of this committee as required by C.R.S. 23‑20‑117.5(4). No member of this committee may be in the business of selling investment services or advice, brokering investments, or have a potential conflict of interest. This committee shall provide advice to the treasurer on investment strategies and goals.

The Treasurer of the University is authorized to designate qualified employees of the treasurer’s office who can buy, sell, and transfer certificates of stock, bonds, and approved funds, and/or other similar financial instruments held in the name of the Regents of the University of Colorado, the University of Colorado, or any of the divisions thereof in order to efficiently manage and invest the university’s financial assets.

Last Amended: January 14, 2009

History:

Adopted 01/14/09