Majmaah University Investment Policy Statement
1. Purpose
This Investment Policy Statement (IPS) establishes the objectives, guidelines, and responsibilities for managing Majmaah University's investable assets. The primary aim is to support the university's mission of academic excellence, innovation, and community engagement by ensuring prudent and sustainable financial stewardship.
2. Governance Structure
· Board of Trustees: Holds ultimate fiduciary responsibility for the university's investments, approving the IPS and overseeing its implementation.
· Investment Committee: Appointed by the Board, this committee is responsible for:
o Developing and recommending investment policies.
o Selecting and monitoring investment managers.
o Reviewing investment performance and compliance.
· Vice Rector’s Office for Development and Investment: Manages day-to-day investment operations, ensuring alignment with the IPS and reporting to the Investment Committee.
3. Investment Objectives
· Preservation of Capital: Safeguard the real value of the university's assets against inflation and market volatility.
· Sustainable Growth: Achieve a long-term return that supports the university's strategic initiatives, including research, infrastructure, and community programs.
· Liquidity: Maintain sufficient liquidity to meet operational needs and unforeseen expenditures.
4. Investment Principles
· Diversification: Allocate assets across various classes (e.g., equities, fixed income, real estate) to mitigate risk.
· Risk Management: Adopt a risk-adjusted approach to balance potential returns with acceptable risk levels.
· Ethical and Sustainable Investing: Prioritize investments that align with environmental, social, and governance (ESG) criteria, reflecting the university's commitment to sustainability and social responsibility.
5. Asset Allocation Guidelines
The Investment Committee shall establish specific asset allocation targets, reviewed annually, to reflect the university's risk tolerance and financial goals.
6. Monitoring and Reporting
· Performance Evaluation: Assess investment performance quarterly against established benchmarks and objectives.
· Compliance Review: Ensure adherence to the IPS, with any deviations reported to the Investment Committee promptly.
· Transparency: Provide annual investment reports to stakeholders, highlighting performance, strategy, and alignment with the university's mission.
7. Review and Amendments
This IPS shall be reviewed at least annually by the Investment Committee, with any proposed amendments submitted to the Board of Trustees for approval.