"Our vision, our theme, our brand encompass means and goals, but much more, they express our character and our ways of being and becoming. To pursue excellence requires much change, transformative change. And such change is already underway. This pursuit is not for the timid or faint of heart."

- Dr. Horace A. Judson, GSU President

GBGfoundation.org, your IMPACT begins here.
Investment Policy Statement

Adopted by the GBGF Board, March 2007

The goal of the Investment Strategy is to generate smooth earnings from endowed funds for use by the university, while preserving the purchasing power of the original gifts, and providing support for foundation operations. Investment earnings that exceed expenditures are reinvested to mitigate the effects of inflation.

The Grambling Black and Gold Foundation’s primary investment objective for its endowment portfolio will be to maximize long-term total return with a total return objective, measured over a market cycle, of not less than the rate of inflation, as measured by CPI. Ideally, total return should exceed market performance.

The Investment Committee of the Grambling Black and Gold Foundation (GBGF) proposes three main categories of investments differentiated by the source and purpose of the funds:

  • Long Term Investment Pool (LTIP) – A pooled fund designed for endowed and similar long-term funds. LTIP funds are invested in a broad mix of asset classes. This pooled investment structure is operated much like a mutual fund in which participants own units. Its goals are structured to fund University programs over an extended period. Investments in the LTIP are made up of endowment monies from GBG Foundation, Grambling State University’s Custodial Endowments or Endowed Scholarship Funds as well as a portion of callable funds (funds repayable on demand or convertible before maturing, if applicable).
     
  • Short Term Investment Pool (STIP) – A pooled fund designed for short-term expendable funds. This investment structure is designed to focus on fixed income instruments intended to provide security or principal as well as income to supplement Foundation operating expenses. The STIP provides a secure vehicle from which to fulfill University gift remittance requests from callable funds representing current gifts and distributions of gift earnings held in the STIP.

    • The investment target for callable funds available to the University within STIP is 50% in “fixed income like” instruments and 50% invested in LTIP.

  • Life Income Arrangements Trusts (LIA’s) -- Funds managed by the Grambling Black and Gold Foundation typically as trustee under express trusts created by written agreements. Examples of written agreements the Foundation will offer include Charitable Remainder Unitrust (CRUT), Charitable Remainder Annuity Trust (CRAT), Charitable Gift Annuity (CGA), Pooled Income Fund (PIF) as well as external trusts.

    • LIAs are generally managed in mutual funds including domestic and international equities and fixed income instruments.

Distribution Policy or “spending policy” – GBG Foundation

The endowment fund payout policy will be 4.0% of the average endowment fund’s market value computed using the previous 36 months of portfolio activity. Earnings in excess of the payout rate are reinvested in endowment principal. Pay amounts available for expenditure are calculated according to a predetermined formula. The payout will not invade the corpus of the endowment.

Final investment policy details will be available at: www.gbgfoundation.org

 

Back