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Investment Policy

The Board of Directors delegates to the Investment Committee the authority to manage the financial assets of the Curtis Memorial Library.  The general operating principles of the Committee are to ensure that the portfolio earns maximal annual returns, consistent with prudent risk, and that the rate of annual spending from principal and income of the portfolio not compromise the ability to support Library needs in perpetuity.

Investment Committee

The Committee is authorized (subject to the review and approval of the Board of Directors) to appoint and retain one or more investment managers to assist in the performance of its obligations.

The Committee shall meet twice a year, (typically) in January and July.  The meetings shall include reports from the investment manager(s).

Every fifth year (or more frequently if necessary), the Committee shall conduct a full review of endowment performance and spending policy, in light of the principles listed below.  It is anticipated that this review will assess the performance of the current manager(s), in comparison to other managers and investment strategies, and that the spending rule will be assessed in light of market returns, inflation rates appropriate to Library services, and anticipated patterns of capital gifts.

Asset Allocation

On average, the net financial assets should be allocated 65 per cent in equities or equity funds and 35 per cent in high grade bonds, bond funds, and cash equivalents.  At the discretion of the manager, the equity share may be as high as 70 per cent or as low as 60 per cent.  The manager should not undertake allocations outside of these bands without consultation with or direction from the Chairperson of the Committee.

The equity portion of the portfolio should be diversified among companies and sectors.  In particular, holdings in a single corporation should not exceed (and should typically be less than) 10 per cent of the value of total equity holdings.

Spending Rule

As a percentage of the value of the Endowment, withdrawals to support annual Library operations should not exceed an average of 4.75 per cent over any three year period and should not exceed 5 per cent in any given year.

For purposes of the spending rule the value of the Endowment shall be computed as an average of the Endowment in the twelve quarters preceding the fiscal year in which the withdrawal takes place.

Approved Curtis Board of Directors 1-21-10

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