VI. Discussion on the Current MOU and the Relationship Between KSU and The KSU Foundation, Inc.
This agenda item was tabled, as noted above.
VII. Quarterly Investment Report
Mr. Chuck McCurdy, Principal, Cerity Partners was scheduled to present this agenda item and provided the Committee members with a quarterly report prior to the meeting. He was unable to be appear, though, requesting instead to make a brief presentation at the next full Board meeting. The Board's Chair, Regent Dukes, stated that she did not believe that he would be a problem.
President Akakpo expressed his displeasure with Cerity Partners and stated that he would like to begin an RFP to find an investment firm that would truly support KSU.
Chair Moyer shared his comments and observations regarding Cerity Partners' quarterly report and inquired of General Counsel Atwell as to the formal process for requesting an RFP to find a new investment advisor. He also invited comments and questions.
Chair Dukes stated that she believed this was a good time to begin an RFP exercise and agreed with Chair Moyer that this needed to be done every three to five years as a best practice.
Regent Hatchett queried whether there was any value in hearing Cerity Partners' presentation to the Board before deciding to issue an RFP.
President Akakpo stated that he did not believe that Cerity Partners had provided the University with good services and with the University’s best interests in mind. Chair Moyer emphasized that beginning an RFP was not a punitive action and that it’s simply best practice for the University to review investment partners every three to five years. He stressed the importance of maintaining a warm relationship with Cerity Partners.
Chair Moyer called for a motion for the Committee to recommend to the Board the issuance of an RFP to identify an investment manager moving forward. He requested that the recommendation be on the agenda for the next regularly scheduled Board meeting.
MOTION by Regent Hatchett:
Move the Committee to recommend to the Board the issuance of an RFP for investment manager services.
Seconded by Regent Adams and passed without dissent.
Following the vote, Chair Moyer requested that Chair Dukes include this recommendation on the next regular Board meeting agenda, to which she agreed.
VIII. Discussion on the Transition to the New Investment Policy
This agenda item was presented by Chair Moyer, who opened the discussion by remarking that several investments in the University's current portfolio are problematic, especially on the fixed income side.