University of Washington Policy Directory

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*Formerly part of the University Handbook
Board of Regents Governance

Standing Orders

Chapter 10




University of Washington Internal Investment Management Company



1.  Introduction

The University of Washington Board of Regents is vested with the responsibility for the management of the properties of the University, including its investment programs. Statements of Investment Objectives and Policy are approved by the Board of Regents to guide the management of the University's investment programs.

The Board of Regents delegates to its Finance and Asset Management Committee (FAM) the responsibility for overseeing the investment program within the general principles enumerated in the above policy statements. In 2001, the Board of Regents established an advisory committee, the University of Washington Investment Committee, consisting of both Board of Regent members and external investment professionals. In 2004, the Board of Regents appointed the University's first Chief Investment Officer to manage the day to day activities of the investment portfolios. In 2015, the Board of Regents approved the establishment of the University of Washington Investment Management Company ("UWINCO"), an internal investment management company. The former investment management advisory committee was replaced with an investment management advisory board known as the University of Washington Investment Management Company Board ("UWINCO Board").

2.  Powers and Duties

The UWINCO Board shall:

  A. Advise the Board of Regents (and/or its appropriate committee), the President of the University and the Chief Investment Officer on matters relating to the management of the University's investment programs. This includes but is not limited to the following: overall asset allocation, performance goals, new investment strategies, strategy implementation, manager identification, due diligence, and valuation policy.

  B. Advise the President of the University on the selection and compensation of the Chief Investment Officer and other matters related to the administration of the University's investment programs.

  C. Advise the Chief Investment Officer on the compensation of professional investment staff and other matters related to the administration of the University's investment programs.

3.  Accountability

The UWINCO Board shall be accountable to the Board of Regents.

4.  Membership and Terms

  A. Membership

The UWINCO Board shall consist of no more than ten members appointed by the Board of Regents, plus the President of the University who shall serve as ex officio. Appointments shall be based upon recommendations submitted by the Governance Committee of the Board of Regents and approved by the Board of Regents after consultation with the Chair of the Board of Regents, the Chair of the UWINCO Board, and the President of the University.

One or two UWINCO Board members shall be selected from the Board of Regents. The remaining UWINCO Board members shall be experienced investment and/or business professionals of varying backgrounds with close ties to the University. Criteria for non-regent membership on the UWINCO Board shall include investment and/or business expertise in such areas as private equity, hedge funds, international markets, real estate, and institutional investing; access to desirable portfolio managers; strategic focus; and commitment to the University of Washington.

  B. Chair and Vice Chair

The Chair and Vice Chair of the UWINCO Board shall be recommended by the Governance Committee of the Board of Regents and approved by the Board of Regents. The Vice Chair of the UWINCO Board shall have the authority and shall perform the duties of the Chair of the UWINCO Board in the event of the Chair's absence or incapacity.

  C. Term

Both regent and non-regent members shall make a minimum commitment of three consecutive years, renewable by the Board of Regents.

  D. Administrative Support

The Chief Investment Officer shall ensure that the UWINCO Board has appropriate administrative support services, including secretarial assistance and record keeping.

5.  Meetings of the UWINCO Board

  A. Meetings

Regular meetings of the UWINCO Board shall be held quarterly. Special meetings may be called by the Chair of the Board of Regents, the Chair of the UWINCO Board, or the President of the University at any time.

  B. Notice and Agenda

Notice of time and place of the UWINCO Board meetings together with the agenda and all available material, shall be delivered to each member of the UWINCO Board, by regular mail, electronic mail, or otherwise, before any regularly scheduled meeting.

As the UWINCO Board is advisory, its meetings remain exempt from the requirements of the open public meetings act, state of Washington Chapter 42.30 RCW.

6.  Committees of the UWINCO Board

The standing committees set forth below are established to facilitate the business of the UWINCO Board and the University.

  A. Compensation and Leadership Committee

    1) Purpose

The primary purpose of the Committee is to advise the President of the University on the compensation of senior professional investment staff, the leadership effectiveness of the investment program, and the investment program budget.

    2) Composition

The Committee shall be comprised of at least three members of the UWINCO Board. The Chair of the UWINCO Board (or his/her designee) shall be the Chair of the Committee.

    3) Meetings

The Committee shall hold regular annual meetings. Special meetings may be called upon the request of the UWINCO Board Chair, the Compensation and Leadership Committee Chair, or the President of the University.

  B. Risk and Compliance Committee

    1) Purpose

The primary purpose of the Committee is to monitor investment program risk management and compliance, risk management procedures, compliance with the co-investment guidelines, and the liquidity of the Consolidated Endowment Fund. Issues or concerns shall be communicated as appropriate to the Board of Regents and the President of the University.

    2) Composition

The Committee shall be comprised of at least three members of the UWINCO Board. The Chair of the UWINCO Board (or his/her designee) shall be the Chair of the Committee.

    3) Meetings

The Committee shall hold regular annual meetings. Special meetings may be called upon the request of the UWINCO Board Chair, the Risk and Compliance Committee Chair, or the President of the University.

7.  Reports to the Board of Regents

On behalf of the UWINCO Board, the Chief Investment Officer shall report to the Board of Regents (and/or its designated committee) providing:

  A. Quarterly UWINCO Board Discussion Summary—A verbal briefing on UWINCO Board meetings.

  B. Quarterly Investment Report—An investment performance report for the Board of Regents.

  C. Annual Investment Program Review—A review of the investment policies, investment performance, market conditions, strategic portfolio positioning and risk, and an overview of investment management practices among peer institutions.

8.  Indemnification and Compensation

The University shall indemnify UWINCO Board members to the fullest extent permitted by law, the Standing Orders of the Board of Regents, and Regent Policies of the Board. UWINCO Board members shall not be paid for service as Board members.

9.  Conflict of Interest

Regent members of the UWINCO Board are governed by conflict of interest rules applicable to regents. Non-regent members shall comply with the following conflict of interest provisions:

  A. When a UWINCO Board member knows that the University is considering a transaction in which he or she has a beneficial interest, the member shall (1) alert the Chief Investment Officer of his or her potential beneficial interest, and (2) not participate in the formulation or rendering of advice with respect to the transaction.

  B. UWINCO Board members shall not participate in the formulation or rendering of UWINCO advice where their participation could be influenced by financial or other considerations that would conflict or could reasonably appear to conflict with their UWINCO Board obligations to only consider the best interest of the University. Where a member is uncertain about the application of this rule to particular circumstances, he or she should consult the Chair of the UWINCO Board and the Chief Investment Officer who may seek the advice of the Attorney General's Office as appropriate.

  C. UWINCO Board members may engage in investment transactions with the University if the Chair of the UWINCO Board and the Chief Investment Officer (who may consult with the Attorney General's Office as he or she deems appropriate) determine that the UWINCO Board member has not participated in the formulation or rendering of UWINCO advice to the University regarding the transaction.

10.  Amendments

The Board of Regents Governance, Standing Orders, Chapter 10, University of Washington Internal Investment Management Company, shall be reviewed annually and updated as needed. Amendments, additions, deletions, or replacements, may be recommended by the UWINCO Board. Such changes shall be subject to the approval of the Board of Regents.

BR, September 10, 2015.


For related information, see:

  • Board of Regents Governance, Standing Orders, Chapter 7, "Policy Governing Approval of Investments"