Investment and Spending Policy

Role of the Finance and Investment Committee

The CSULB 49er Foundation Endowment was created to provide perpetual financial support to California State University, Long Beach. The Finance & Investment Committee  is acting in a fiduciary capacity with respect to the Portfolio and is accountable to the Executive Committee and Board of Directors for overseeing the investment of all assets owned by, or held in trust for, the Portfolio.

The CSULB 49er Foundation seeks to protect the long-term viability of its endowment by making both short- and long-term investments.  We seek a total return that provides for the annual spending policy disbursement and for inflation protection.  Any excess return will be allocated to the individual funds that constitute the endowment.  The spending policy is based on the Foundation’s long-term, historical rate of return.  The Board recognizes that financial markets will have volatility and that some years may see a negative return.  The Board wishes to provide consistent and reliable income to the faculty and students who currently depend upon the endowment, as well as protect the purchasing power for future recipients.

The Foundation shall distribute an amount equal to 4.5 percent of each endowment fund’s corpus based on a 36-month moving average market value.  The valuation date shall be December 31 for the following fiscal year’s allocation. Once the annual spending allocation is calculated, the Foundation shall transfer these funds into a safe, liquid investment until the distribution is made.

At the time of valuation, no distribution will be made if an endowment’s corpus value is equal to or less than 80 percent of its historical gift value. Partial distributions will be made as long as a distribution shall not cause the historical gift value to drop below 80 percent (i.e., if an endowment’s corpus value is 82 percent of its historical gift value, a partial distribution of only 2 percent will be made.)

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