Smith investments are managed by Investure LLC along with those of the other Investure consortium of clients.
The investment office (Investure) is charged with the responsibility for implementing and administering the college's investment policy. Its goals are to assist in the attainment of the stated objectives while complying with all Investment Policy guidelines and standards.
The investment office serves as the primary contact for all money managers and the custodian.
The investment office reports to the investment committee monthly and meets with the committee no fewer than three times per year.
Investing Strategies and Considerations
The long-term investing horizon for the endowment allows for a large allocation to equity-oriented strategies where the potential for long-term capital appreciation exists. Other assets, including but not limited to hedging, derivative, or diversification strategies, are also used to reduce risk and overall portfolio volatility.
Smith manages its endowment investments to maximize annualized returns net of costs over rolling 10-year periods while adhering to stated risk parameters. The investment committee seeks 1) to avoid 25 percent or greater peak-to-trough declines in inflation adjusted unit value; and 2) to avoid annualized shortfalls exceeding 3 percent relative to the mean return of the 50 largest endowments reporting to NACUBO, over rolling 10-year periods.
The investment committee recognizes the need to maintain adequate liquidity in the endowment portfolio. At least 60 percent of total endowment assets are held in investment vehicles utilizing lock-ups of five years or less, recognizing that private partnership cash flows are unpredictable. Under normal circumstances, private partnership investments, including unfunded capital commitments, will not exceed 65 percent.