Foundation fine-tunes investments
The UNT Foundation Investment Committee meets at least quarterly with its investment consultant to review the portfolio’s performance and to address any issues or concerns. The committee and consultant Hammond Associates discuss national and international economic trends and the anticipated performance of markets in future periods. Hammond serves 44 higher education institutions and 30 foundations, among other clients.
Actual individual and composite results for the portfolio are compared to the policy benchmark returns. The team also considers changes in key fund management, internal and external changes affecting any asset class and any changes in the investment process.
Because asset allocation is the most critical component of the Foundation’s return, the portfolio will be rebalanced at least annually.
| Alternatives | |
| Real Assets | 10.0% |
| Hedge Funds | 10.0% |
| Bonds | |
| U.S. Inflation-Protected Bonds | 6.0% |
| U.S./Global Fixed Income | 19.0% |
| Equities | |
| U.S. All-Cap Stocks | 22.0% |
| U.S. Large-Cap Quality Stocks | 6.0% |
| International Large-Cap Stocks | 19.0% |
| International Small-Cap Stocks | 3.0% |
| Emerging Market Stocks | 5.0% |
In addition, the portfolio will be rebalanced in the event any asset class allocation differs from policy by more than 20 percent of the target weight, but with a 2 percent minimum deviation (before rebalancing is required). Alternative asset classes may require more time to achieve target allocation.
The UNT Foundation’s investment portfolio is structured to provide a consistent level of inflation-adjusted returns within acceptable long-term risk levels. It consists of an allocation of assets among well-diversified equity, fixed income and alternative investments.
The Foundation portfolio’s long-term compound expected return is 8.5 percent. To achieve that, the Foundation utilizes a select group of money managers that have a consistent performance track record versus their benchmark, a sound investment process and experienced investment consultation.
