INVESTMENT COMMITTEE CHARTERCHARTER OF THE INVESTMENT COMMITTEE
OF THE BOARD OF DIRECTORSOFKAVLI FOUNDATION
July 17, 2017
I.

Purpose and Scope

The primary function of the Investment Committee (the “Committee”) of theBoard of Directors (the “Board”) of the Kavli Foundation (the “Foundation”) is to oversee
the management of the Foundation’s endowment, to protect and enhance its value, net
after inflation and distributions, and provide sufficient liquidity to meet its payout andexpenditure obligations. The Board is responsible for approving the Charter of theInvestment Committee.
II.

Composition

The Committee shall be comprised of not less than three (3) persons asappointed by the Board. At least two members of the Committee must be members ofthe Board. The Chairperson does not need to be a Board member. Each member of theCommittee shall be free from any relationship that, in the opinion of the Board, wouldinterfere with the exercise of his or her independent judgment as a member of theCommittee.
Members of the Committee are expected to have experience in and knowledgeof the capital markets, investment strategies, and at least one member is expected tohave a basic awareness of the rules pertaining to managing foundation endowments.
The members and the chairperson of the Committee shall be appointed by theBoard and shall serve until their successors shall be duly elected and qualified or theirearlier resignation or removal.
The chairperson of the Committee shall have the following roles andresponsibilities:

III.

A.

Provide leadership to the Committee.

B.

Work with staff to prepare the agenda for meetings.

C.

Report progress towards goals to the Board.

Responsibilities and Duties

To fulfill its responsibilities and duties, the Committee shall carry out the following
specific activities:

Board approved 7/17/2017

A.

Investment Policy
The Committee shall review and monitor the Investment Policy Statement(IPS) and the actual management of the endowment to be certain that theapproved policies remain appropriate and are being followed by theFoundation’s financial managers.

B.

Investment Managers and Advice
The Committee shall:
1.

Approve the selection of specific investment managers.

2.
Meet with the investment managers on a regular basis, and at least
annually, to more thoroughly understand each manager’s investment philosophy
and approach to asset and portfolio management.
3.
Should it be deemed appropriate, the Committee may appoint anInvestment Advisor or Advisors. In this case, the Committee would identify,evaluate and appoint an Advisor(s), and meet with the Advisor(s) regularly tounderstand and guide the Advisor(s) on the performance of its duties.
C.

Investment Performance
The Committee shall:

1.
Monitor the investment performance, especially against itsbenchmarks.
2.
Recommend such adjustments to the Investment Manager(s) andAdvisor(s) as may be deemed appropriate.
D.

Report to the Board
The Committee shall:

1.
Report regularly to the Board on the performance of theendowment and the services of the investment Manager(s) and Advisor(s).
2.
Perform any other activities consistent with this Charter, theFoundation’s bylaws and governing law, as the Committee or the Board deems
necessary or appropriate.

Board approved 7/17/17

2IV.

Meetings

The Committee will meet regularly and as may be necessary or appropriate todischarge the functions specified in this Charter. Minutes shall be kept of each meetingof the Committee and will be provided to each member of the Investment Committee.
Limitation of Responsibility
While the Committee has the responsibilities and power set forth in this Charter,
it is not the duty of the Committee to conduct the investment activity. It is expected thatsuch services will be provided either in-house by authorized personnel, or externally,
through approved financial, legal and other managers retained by the Foundation. The
Committee shall have the power to engage other professionals as it deems appropriate.

Board approved 7/17/17

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