The Investment Office oversees the day-to-day management of the College’s financial assets, according to the policies and practices approved by the Board of Regents. These policies and practices are designed to assist in meeting investment and spending objectives. (Click on the Investment Policy link for specific details.)
The College’s financial assets are held primarily in the St. Olaf Endowment, although a sizeable amount of assets are invested in charitable trusts and gift annuity contracts, as well as in working capital. The Endowment includes not only permanently restricted funds, but also includes unrestricted and quasi-endowment. Sinking funds, set aside to meet long-term debt service obligations, are included in the Endowment.
The Endowment is broadly diversified with allocations to domestic and international equities, private equity, fixed income, hedge funds and real assets.
To assist in the management of the Endowment, the Investment Committee has retained the services of Mercer Investment Consulting. Mercer acquired Hammond Associates in 2011. Hammond had served as consultant to the Investment Committee since 2003.
In addition to advising on asset allocation strategies and spending policies, Mercer screens investment opportunities and recommends investment managers to the Investment Committee. Mercer meets with the Investment Committee on a quarterly basis to review investment performance of the portfolio against a peer group of colleges, and manager-specific performance against identified benchmarks.
The College has retained Kaspick & Company to assist in the management of charitable trusts and gift annuity contracts. Kaspick provides both investment and administration management, which includes making payments to beneficiaries and the preparation of tax returns. St. Olaf has been a client of Kaspick since 1998.