Cornell University Investment Policy
Cornell University’s investable assets provide financial support for the University’s educational mission. The University Board of Trustees has delegated responsibility for oversight of Cornell’s Long Term Investments (LTI) to the Investment Committee of the Board. The Investment Committee (IC) meets four times per year and is responsible for establishing investment objectives and the strategic asset allocation for the LTI. Authority for day-to-day management, supervision and administration of the LTI is delegated to the Chief Investment Officer. The Chief Investment Officer appoints investment managers, monitors the overall investment program and investment results, and manages the Investment Office.
Objectives
Most of the assets in the LTI that the Investment Office actively manages are in the Long Term Investment Pool (LTIP). The LTIP is invested across multiple asset classes including stocks, bonds, and alternative asset classes such as private equity, hedge funds, real estate, and resource related investments. Generally stated, the investment objective of the LTIP is to maximize total return (investment income plus market value changes) within risk parameters established by the Investment Committee. Specifically, the objective is to achieve a total return, net of expenses, of at least 5% in excess of inflation (as measured by the Consumer Price Index) over rolling five year periods. The achievement of favorable investment returns enables the University to distribute increasing amounts from the LTIP over time so that present and future needs can be treated equitably in inflation adjusted terms.