Investment Guidelines are set forth in the Regents policy: Investment of Reserves. Currently the policy directs investments to be managed by outside investment managers and includes restrictions that limit the maximum level of equity within the portfolio to 50%, and establishes parameters limiting the form, style and exposure limitations for the fixed income securities which may comprise up to 100% of the portfolio.
Up to a maximum of 50% of the assets in GIP may be invested in the Consolidated Endowment Fund (CEF). Investment returns at the fund level are calculated net of all investment management fees paid. Adjusted Investment Earnings/Losses (AIE) will accrue to and be credited to a participant's accounts on a quarterly basis, after deducting a 1% annualized administrative fee based on the average market value for the period. Annually, subject to market conditions, OAM will establish a distribution rate to be in effect for the following fiscal year. Participants may choose to have the distribution credited to their target account, or have the distribution remain in GIP.