Scope
This policy applies to the invested assets of The University of Wisconsin System Intermediate Term Cash Management Fund. This policy does not include or apply to assets covered under Regent Policy Document 31-9 “Investment Policy Statement: Key Elements and Review Process” (RPD 31-9).
Purpose
The purpose of this policy is to provide the key elements which are to be incorporated into a fuller, more detailed stand-alone document, the University of Wisconsin System Intermediate Term Cash Management Fund: Statement of Investment Policy (IPS), and the process the Board uses for regularly reviewing these key elements and the IPS in its entirety. In broad terms, the IPS should provide the guiding principles for all aspects of the management of the Intermediate Term Cash Management Fund and the premises on which these principles rest, and to provide the Board with an intermediate duration investment option for effective management of cash balances currently not available under RPD 31-9.
Policy Statement
Key elements of the Board’s IPS for the University of Wisconsin System Intermediate Term Cash Management Fund shall include the following:
General Policy Statement, which discusses the underlying bases for the policies and their implementation, and falls into these main categories:
- Investment objectives, constraints, and competencies
- Role of the internal Intermediate Term Cash Management Fund (ITF) Investment Committee
Investment Policies, which are to describe specific policies adopted to attain identified objectives while conforming with the major premises, and fall into these main categories:
- Asset allocations, policy portfolios, and benchmarks
- Other investment and risk management policies and practices
Implementation, which is to describe by whom and how the policies are to be implemented, and fall into these main categories:
- Roles and responsibilities
- Investment Consultant selection, retention, termination and responsibilities
- Investment Manager selection, retention, termination and responsibilities
- Conflicts of interest
Reporting, which is to describe how investment performance will be monitored, and falls into these main categories:
- Monitoring and measuring investment performance
- Reporting and communication standards
Appendices, which are to provide greater detail on various policy elements discussed at a broader level in the main body of the document, and should include the following:
- Detailed asset allocations and benchmarks for the investment fund
Given the centrality of the IPS itself in ensuring that the Board meets its fiduciary responsibilities and effectively oversees the management of the investment program, it is imperative that the Board review, reaffirm, and/or adopt any necessary revisions to the full IPS document on an on-going basis. Although strategic in nature, the IPS should nevertheless be considered a living document; revisions and further refinements may be required as and when goals, constraints, or external market conditions change significantly.
Oversight, Roles, and Responsibilities
The Board of Regents is the principal and ultimate fiduciary for the University of Wisconsin System Intermediate Term Cash Management Fund. The Board of Regents Business & Finance Committee is delegated oversight of the management and administration of the Intermediate Term Cash Management Fund, including the authority to hire investment consultants and investment managers, and to give discretionary authority to investment managers in the purchase and sale of securities within guidelines determined by the Business & Finance Committee.
The Board and/or its Business & Finance Committee shall regularly review and approve the IPS, which is to include asset allocations for the investment funds. The Trust Officers of the Board, along with the internal ITF Investment Committee, are delegated the authority and have the duty to otherwise implement, conduct, oversee, and monitor all aspects of the management and administration of the UW System Intermediate Term Cash Management Fund consistent with the IPS.
Membership of the internal ITF Investment Committee is comprised of the UW System Administration Trust Funds Executive Director as Chair; the UW System Administration Vice President for Finance & Administration (or designee); and additional representatives appointed from participating UW institutions by the Chancellors of those participating UW institutions providing more than 10% of total ITF assets, consistent with the Memorandums of Understanding (MOUs) developed by UW System with each participating UW institution.
New and revised MOUs, after approval by the ITF Investment Committee, will be provided to the Board of Regents Business & Finance Committee and kept on file with the UW System Office of Trust Funds, which will also maintain a record of all agendas and meeting minutes of the internal ITF Investment Committee.
Related Regent Policies and Applicable Laws
Wis. Stat. § 36.11(11m)
Wis. Stat. § 36.29, Gifts
Wis. Stat. § 112.11, Uniform Prudent Management of Institutional Funds Act (UPMIFA)
Regent Policy Document 31-9, “Investment Policy Statement: Key Elements and Review Process”
Bylaws of the Board of Regents of the University of Wisconsin System
History: Res.12100, adopted 11/09/2023, created Regent Policy Document 31-18; Res. 12127, adopted 12/08/2023, approved the Investment Policy Statement for the University of Wisconsin System Intermediate Term Cash Management Fund