Minutes forJanuary 22, 2018KIPP MAC Endowment Committee Meeting
Attendees
Committee members Tom Avery, Hunter Pierson, Tom Pritchard; Dennis Love, Chairman, KIPP MAC Finance Committee; Erika Ellison, Kelly Shields of KIPP MAC; and representatives of Atlantic Trust (AT).
Purpose of meeting
The Endowment Committee (“EC”) met to: (1) review the performance of the portfolio as ofDecember 31, 2017;and (2)discuss any other business.
Actions taken
- Minutes from the October 23, 2017 meeting were approved by the EC.
- The EC approved re-balancing the Aggregate Equities category by increasing the percentage of Foreign Equities to 30.0% of the portfolio. This increase will be funded by (1) moving cash from the Cash Equivalents category sufficient to bring down its percentage to 8.0% of the portfolio; (2) moving cash from the Fixed Income category sufficient to bring down its percentage to 0.0%; and (3) moving sufficient cash from the Domestic Equities category such that the sum of the cash moved in (1-3) above brings the Foreign Equities category up to 30.0%.
- The EC asked AT to provide it with two follow-up items: (1) relative current and forward valuation data for the S&P 500 Index and the MSCI World Ex-US Index; and (2) suggestions on how the EC might consider hedging a portion of its equity exposure in the future.
- Finally, the current approval process for the Annual Spending Percentage (ASP) is shown below as included in our Investment and Spending Policies for the KIPP Metro Atlanta Scholarship and Financial Aid Endowment. The EC asked Erika Ellison to propose revised language to provide KIPP MAC staff with a bit more flexibility on exactly when the ASP will be approved each year.
“The Annual Spending Percentage is approved each fiscal year by a majority vote of the endowment committee (“EC”) and then confirmed by a majority vote of the Directors at the meeting in which the budget for the upcoming fiscal year is approved.”
Respectfully submitted,
Thomas A. Pritchard, EC Chair