• Conducting ongoing rebalancing transactions for the Endowment to keep the overall portfolio within the allowable ranges of its long-term asset allocation policy.
• Voting proxies on behalf of the fund in line with the investment philosophy, management of the portfolio, and instructions of KSU—with voting decisions shared with KSU's administration.
• Providing to the Board quarterly performance reports that monitor the results of the Endowment and each of its underlying investment managers including standard measures of risk and volatility, such as beta, Jensen's alpha, and the Sharpe ratio, for 1-, 3- and 5-year periods, in addition to specific portfolio attributes as requested by KSU. This report will contain the Board's current list of Designated Accounts as well as detail the discretionary activity completed by the Consultant.
• Communicating any expected major changes in the economic outlook, the specific investment strategy (within the bounds of the Investment Policy Statement guidelines), or any other factors that affect implementation of investment processes, or the investment objective process of the fund's investment management.
• Informing KSU regarding any qualitative change to the Consultant's or investment management firms' organization. Examples include changes in key personnel, ownership structure, investment philosophy, etc.
• Providing general consulting services as needed and requested by the Board, attending meetings, and performing other duties detailed in the Board's agreement with the Consultant.
• Operating without any conflicts of interest.

External Investment Managers retained by the Endowment will have full discretion to make investment decisions for the assets placed under their supervision that are consistent with their stated strategy and the various provisions of this Investment Policy Statement. Specifically, investment manager responsibilities include:

• Investing and reinvesting Endowment assets under their supervision in accordance with the guidelines and objectives contained in this document as well as any manager addendum issued specifically for their strategy.
• Seeking “best execution” with respect to portfolio transac
• Voting proxies, when designated in their agreement, for the exclusive benefit of the Endowment. Each investment manager shall provide the Consultant and/or the Board with a copy of their proxy voting policy upon request. Each investment manager shall report a record of their proxy votes annually.
• Promptly informing the Consultant regarding all significant matters pertaining to the investment of the Endowment's assets, including violation of this document or their manager addendum. The Consultant and the Board shall be notified in writing of any material change in ownership, organizational structure, financial condition, senior staff, and/or the day-to-day management of the strategy.
• On a quarterly basis, providing a written report affirming compliance with the provisions outlined in this document and their investment manager addendum. In addition, the investment managers shall deliver a written report detailing their strategy's performance, analysis of results, and outlook of the market and economy. Written reports shall be submitted to the Consultant and the Board in a timely fashion.
• Performing their duties with respect to the assets with the same care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a similar capacity and with a similar familiarity with such matters would use in the conduct of a similar enterprise with similar aims.

Other responsibilities of an investment manager are outlined in the Investment Manager's agreement.

One or more third-party custodians will provide safekeeping and serve as the “book of record” for the valuation of Endowment assets. On a monthly basis (or quarterly depending on the investment), the custodian shall supply an accounting statement that will include a summary of all receipts and disbursements and the cost and the market value of all assets. Other responsibilities of the custodian are outlined in the custodian's service agreement or the specific offering documents of the investment.