This Endowment Investment & Spending Policy shall be formally reviewed annually and at such other times as desired by the Board of Regents, or the Board's designated Committee, and the University's administration. Any modifications to the policy shall be approved by the Board of Regents. This Endowment Investment & Spending Policy shall supersede all existing Kentucky State University Endowment Investment Policies and Endowment Spending Policies.

The Kentucky State University Endowment (Endowment) is an aggregation of funds comprised of gifts from donors and grants from the Commonwealth of Kentucky, with the requirement that they be invested in perpetuity to generate a reliable and steadily growing revenue stream to support the mission of Kentucky State University (KSU) both now and in the future. The revenue stream, or annual spending distributions, supports scholarships, chairs, professorships, and departments, as defined by the executed Endowment agreements. The Endowment is expected to provide fiscal stability because the principal is invested for long-term growth, and spending distributions are generated annually.

KSU has a fiduciary responsibility to prudently manage and preserve the long-term purchasing power of the Endowment, as well as the individual endowment funds, in order to evenly support present and future beneficiaries. This fiduciary responsibility constitutes both a legal and moral obligation to donors and the Commonwealth of Kentucky, who intend that their gifts and grants provide support for KSU into perpetuity.

The Endowment is considered open and can welcome additional funds from current or future donors with the expectation that they be invested on a long-term basis.

The Board of Regents delegates to the administration the following investment-related activities.

In collaboration with the President, the administration will—in accordance with appropriate regulations and guidelines—appoint, monitor, and evaluate the external investment manager or management firm for the investment asset allocation and strategies approved by the Board of Regents or its designated Committee. The administration will provide updates to the Board or its designated Committee on the ongoing monitoring and evaluation of the firm at each meeting and at other times as requested by the Board or its designated Committee. The administration may implement temporary investments as needed due to the firm's investment strategy, portfolio structure changes, and/or domestic/global conditions.

The investment manager will exercise discretion over the securities or assets within the specified investment guidelines. Investment managers will follow the approved asset allocation guidelines within this policy.

The following financial and investment objectives have been established for the KSU Endowment: