The purpose of the Southwestern Oklahoma State University Foundation, Inc., is to benefit, support and enhance the development and objectives of Southwestern Oklahoma State University. The primary mission of the Foundation is to fund scholarships to students attending Southwestern Oklahoma State University and provide resources to supplement University resources that are required to sustain operations. The efforts of the Foundation to generate funds shall be in alignment with the academic needs and priorities of the University. The Foundation shall insure integrity to meet donor expectations.
The Board designates an investment committee to review the results of operations on a quarterly basis. The committee is guided by an investment policy developed by the Board. The policy outlines the basic investment objectives as follows:
- To attain a minimum return of seven percent (7%) compounded annually after deducting all expenses and advisory fees over the period of a full market cycle.
- To achieve a relative rate of return of three percent (3%) over the inflation rate (CPI).
- To earn a real rate of return defined by the endowed spending of the fund plus the inflation rate.
The Board of Trustees expects this objective to be fulfilled within the levels of risk that a “prudent person” would take under various economic conditions.
The specific guidelines include the following:
- Liquidity--Because of the nature of the plan, liquidity will continue to be a primary concern. Therefore, the funds should be managed in such a manner to provide liquidity by investing in marketable securities.
- Safety of Principles--It is believed that the criterion of safety of principle should not be imposed on each portfolio commitment. However, the portfolio taken as a whole must be structured over the long-term. First, with an attitude to conserve principle; and second, to enhance capital growth.
- Stability of Market Value--Volatility of the quote portion of the portfolio should not exceed that of the Standard & Poors 500. Volatility of the fixed income portion of the portfolio should not exceed that of the Sheraton Lehman long-term G/C bond index.
Also, the asset mix of the Foundation’s funds are as follows:
- No greater than 75% in fixed income/No less than 25% in fixed income.
- No more than 70% in equities/No less than 25% in equities.
- No more than 25% in cash equivalents.
- Items 1 through 3 apply only to assets not otherwise restricted by a donor.
The philosophy of the Board of Trustees requires the investment of the Foundation’s fixed income assets to the following list of securities:
- Certificate of deposits with institutions that are members of FDIC and shall be limited to 99% of the Federally Insured Amount.
- U.S. Government Securities (including U. S. Treasury or Government Agency Obligations).
- Corporate Bonds (with the objective to provide yields in line with high-grade medium and long-term obligations).
- Money Market Funds or similar cash equivalents.
- Commercial Paper (rated either Al or Pl by at least one rating agency).
- Mutual Funds, approved by the Investment Committee.
The following types of assets or transactions are expressly prohibited:
• Uncovered Option Writing • Selling Short • Commodities • Letter Stock • Margin Transaction • Foreign Securities that are not listed on the New York Stock Exchange, American Stock Exchange, or National Market System and American Depository Receipts.