Here is an example Investment Policy Brian Tucker got from somewhere else:
1. OBJECTIVE
The primary purpose of the endowment fund is to provide support for
that part of the operating budget not supported by grants and gifts.
Typically this will be for overhead types of expenditures. The endowment
fund also serves as a "surge tank," counter-balancing periodic shortfalls
when funding sources do not fully support necessary expenditures and being
replenished in times to surpluses. While the payout may vary from year to
year, the goal is to maintain the purchasing-power value of the endowment
over time. This implies an average payout rate not to exceed 5 percent.
2. GUIDELINES
The endowment shall be managed on the basis of total return (interest and
dividends, together with capital gains/losses). A rolling 3-year period
will be used to judge performance. All other things the same, it is
desirable that investment managers have a low annual expense ratio. For the
stock-invested portion of the endowment, preference therefore is given to
indexed or partially indexed funds. Asset allocation ranges for the overall
endowment are as follows: cash equivalents and fixed-income investments, 25%
to 40%; and equity investments, 60% to 75%. Periodic rebalancing should
occur when these ranges are exceeded. Flexibility to changing conditions
brought about by the passage of time, market performance, and the mission of
GeoHazards is essential.
3. INVESTMENT REVIEW
It shall be the responsibility of the Board of Trustees to review at least
annually the asset mix and investment performance, with the intent of
assuring that endowment-fund investments meet these guidelines.