July 2021

Sylff Operation Manual, July 2021
Published by the Tokyo Foundation for Policy Research
Roppongi Grand Tower, 34th Fl.,
3-2-1 Roppongi, Minato-ku, Tokyo 106-6234, Japan
Tel +81-3-5797-8402
Fax +81-3-5570-6032
Email sylff@tkfd.or.jp
Website https://www.sylff.org
Portal site https://sylff.tkfd.or.jp

OPERATION MANUALFor the Administration of the Sylff Program
July 2021
CONTENTS
I. Program Operations
1. Introduction ...................................................................................................................
2. Program ..........................................................................................................................
3. Structure .........................................................................................................................
4. Program Administration ..............................................................................................
A. Objectives and Scope
B. Budget
C. Announcement and Selection
D. Orientation and Communication with Sylff Fellows
E. Reporting
5. Revision of Agreement .................................................................................................

3
3
4
5

8

II. Endowment Management
Glossary of Financial Terms ..........................................................................................
Flow Chart of Sylff Endowment Management ...........................................................
1. Purpose of Endowment Management .....................................................................
2. Separate Accounting/Pooled Investment ...............................................................
3. Investment Guidelines ...............................................................................................
A. Principles
B. Exceptions
C. Currencies of Investment
4. Sylff New Financial Scheme ......................................................................................
5. Revision of Agreement ...............................................................................................

11
12
13
13
13

16
16

III. Report Forms (Attachments)
1. Program Report ...........................................................................................................
2. Sylff Fellows Information Sheet ................................................................................
3. Income-Expenditure Statement / Breakdown of Capital .....................................
4. Bond Portfolio / Description of Term Deposits .....................................................
5. Statement for “Exceptions” ........................................................................................
6. Review Report .............................................................................................................

19
20
21
22
23
24

I. PROGRAM OPERATIONS

1

I. PROGRAM OPERATIONS

1. Introduction
2. Program
3. Structure
4. Program Administration
A. Objectives and Scope
B. Budget
C. Announcement and Selection
D. Orientation and Communication with Sylff Fellows
E. Reporting
5. Revision of Agreement21. INTRODUCTION
This document is intended to provide Sylff program administrators at Sylff institutions
with practical information and guidance on efficient and effective management of the
program. Queries should be addressed to the Leadership Development section of theTokyo Foundation for Policy Research, which is responsible for overall program
management (see contact information on the inside front cover.).

2. PROGRAM
Generally known as Sylff, the Ryoichi Sasakawa Young Leaders Fellowship Fund is a
global fellowship program launched by The Nippon Foundation in 1987 with the
purpose of cultivating and nurturing social leaders by supporting students pursuing
graduate studies in the social sciences and humanities. It is an outgrowth of thephilanthropic activities of the late Ryoichi Sasakawa, the founder of The Nippon
Foundation. To date, endowments of $1 million each have been presented to 69
universities and consortia in 44 countries. More than 16,000 students have received
fellowships since the program's launch, and many of these Sylff fellows have gone on
to become leaders in a variety of fields following graduation.

3

MISSION
To identify and nurture leaders
who will initiate action to transcend differencesin nationality, language, ethnicity, religion, and political systems andwho have the integrity, determination, and expertise tobring about positive social change inglobal society and the local community.
PHILOSOPHYThe Ryoichi Sasakawa Young Leaders Fellowship Fund (Sylff) seeks to develop
socially engaged leaders committed to contributing to the happiness and wellbeing of others. Sylff fellows respect viewpoints that differ from their own anddedicate themselves to promoting justice and understanding—helping doors that
had been closed open to new opportunities and a better future. Academic
excellence is an important criterion for selection, but even more critical is a desire
to apply one’s research achievements and expertise in addressing pressing social
issues.

Each endowed institution plays a proactive role in achieving the goals of the program,assuming responsibility for identifying and selecting students with high potential for
leadership in bringing about the positive changes called for by social situation neededby society. Sylff institutions and fellows are encouraged both to build networks among
one another and to collaborate with non-Sylff entities in working toward thebetterment of society.

3. STRUCTURE
The Sylff program is a collaborative undertaking among the following organizations:
The Nippon Foundation
The Nippon Foundation is the donor of the Sylff endowment. Established in 1962 tocontribute to maritime development, The Nippon Foundation supports domestic social
welfare and volunteer initiatives and promotes international cooperation with a focus
on improving basic human needs, developing human resources, and encouraging

4

international cooperation.
The Tokyo Foundation for Policy Research
The Tokyo Foundation for Policy Research is responsible for overall Sylff program
management, including:(1) Collaborating with the steering committees of Sylff institutions to maintainefficient and effective program operations and endowment management(2) Supporting Sylff fellows’ research activities, social initiatives, and networkbuilding through various programs and events(3) Serving as the secretariat of the Sylff Association1
Sylff Institutions (Sylff Steering Committees)
A Sylff institution operates the Sylff program through a Sylff steering committee,
consisting of a chairperson and committee members. The steering committee is
responsible for sound program operations and endowment management at each
institution, including:(1) Operating the Sylff fellowship program (see Part I, Section 4)(2) Managing the Sylff endowment (see Part II)(3) Reporting to and communicating with the Tokyo Foundation for Policy Researchon the status of the program and endowment management (see Part I, Section 4 E)
(4) Cooperating and collaborating with the Tokyo Foundation for Policy Research on
various Sylff-related programs and activities

4. PROGRAM ADMINISTRATION
A. Objectives and Scope
The objectives and scope of the fellowship program at each institution are stipulated in
the Appendix to the original “Agreement” that was signed by the representatives of
The Nippon Foundation and the Sylff institution or in the “Memorandum ofUnderstanding (MOU)” subsequently signed by the representatives of the Tokyo
Foundation for Policy Research and the Sylff institution.
1

The Sylff Association is an iconic and conceptual platform established with the purpose ofbringing closer together the many stakeholders in the Sylff community, including current andgraduated fellows, steering committee members at the 69 Sylff institutions, and the staff of The
Nippon Foundation and the Tokyo Foundation for Policy Research. The Association also helps
raise the program’s profile both inside and outside the community.

5Besides institution-specific guidelines, the following items apply to all Sylff
institutions:(1) Sylff Identity
Each Sylff institution has its own name for the program, with some institutions
choosing to use “Sasakawa” or other appellations instead of “Sylff.” Regardless ofwhether or not “Sylff” is incorporated into the official name, each institution isrequested to make clear that the program is part of the global Sylff community
administered by the Tokyo Foundation for Policy Research and that the fellowshiprecipients are called Sylff fellows (even after they graduate).
(2) Eligibility
Fellowships are awarded to outstanding postgraduate students who are enrolled indegree programs with high potential for leadership at the local, national, regional,
and international levels in their private and public lives. The qualities leaders mustpossess will change as society changes, and forms of effective leadership invariably
differ from one region to another. Therefore, each Sylff institution is asked todevelop its own definition of leadership, and such traits should be included as being
an important criterion in the screening of applicants. Each institution is asked toreview the leadership qualities periodically to meet the changing social
environment.
(3) Scope / Research Areas
Applicants must be enrolled in a program that falls within the parameters of thesocial sciences or humanities, and preference should be given to applicants who
intend to pursue research that seeks solutions to social problems or needs.
Recognizing the growing tendency toward inter- and multi-disciplinary approaches,
however, students from outside the social sciences or humanities may still be
eligible for a Sylff fellowship if they pursue multi-disciplinary research from a social
science or humanities perspective. If the Sylff steering committee wishes to change
the scope of the program, it should propose such a change to the Tokyo Foundation
for Policy Research in writing before implementing the change, as this will
necessitate an amendment to the original Agreement establishing the endowment.
Please refer to Section 5 (Revision of Agreement) below.
(4) Amount of Fellowship
Sylff is a merit-based program, not a need-based one. Sylff fellowships are intended
to enable the best and brightest students to commit themselves fully to their field of6

study or research. The amount provided should be reasonably determinedaccording to this intent. It should also, whenever possible, be competitive with otherhighly prestigious scholarships and fellowships offered by the institution.
(5) Duration of Fellowship
Fellowships may be awarded for a period of up to three years, provided that thestudent makes satisfactory progress toward the degree he or she is pursuing.
Renewal of the fellowship at the end of each academic year should be contingent onan evaluation of the student’s progress by the steering committee.
B. Budget
The Sylff steering committees is responsible for developing a budget specifying theamount to be set aside for fellowships and administrative expenses in accordance with
Appendix 2 (Objectives and Scope of the Program) of the Agreement. In principle, thebudget should be developed on the basis of actual income. A portion of annual income
should be set aside and added to the capital as “reserves.” For details, refer to Part II,
Section 3 A (3) on the “Use of Income and Reinvestment.”
C. Announcement and Selection
The Sylff steering committee is requested to announce the call for applications in a waythat will attract the best and brightest students and screen applicants in an open andtransparent manner. Announcements may be made using posters, fliers, websites,
email, and institutional social media accounts, and applicants should be screened on acompetitive basis. The name “Sylff” and its objectives should be contained in theannouncements.
The selection of Sylff fellows should be based on both their academic excellence andleadership potential. Each institution can develop its own criteria on how thesequalities are measured.
D. Orientation and Communication with Sylff Fellows
Once the new Sylff fellows are selected, they should be fully informed of the Sylff
program—its mission and philosophy, organization, and support programs offered by
the Tokyo Foundation for Policy Research. Orientation and follow-up communication
activities should be implemented to facilitate fellows’ understanding. Please keep
abreast of new Sylff initiatives by visiting the Sylff website at www.sylff.org.

7

E. Reporting (see Part III)All Sylff institutions are required to submit the following annual reports by the dateindicated.
(1) Program Report (Attachment 1, p. 19)
A program report, submitted within three months of the end of each academic year.
(2) Sylff Fellows Information List (Attachment 2, p. 20)
Information on new fellows, submitted as soon as their selection is finalized.
(3) Financial Report (Attachments 3–6, p. 21-24)

A financial report, submitted within three months of the end of each fiscal year. For
details, refer to Part II, Section 3 A. For institutions falling into the “Exceptions”
category, refer to Part II, Section 3 B.

5. REVISION OF AGREEMENT
When the Sylff steering committee wishes to revise Appendix 1 (Management of theFund) or Appendix 2 (Objectives and Scope of the Program) of the Agreement, it
should consult with the Tokyo Foundation for Policy Research and submit a written
proposal before taking any action. If, following discussions, the revisions are agreeable
to both sides, a Memorandum of Understanding (MOU) will be signed to execute therevision.
If the Tokyo Foundation for Policy Research and the steering committee agree that the
proposed changes do not require an MOU, the changes may be implemented by way ofan exchange of written correspondence (letter or email) between the chairperson of the
Sylff steering committee and the executive director for leadership development of theTokyo Foundation for Policy Research.

8II. ENDOWMENT MANAGEMENT

9II. ENDOWMENT MANAGEMENT
Glossary of Financial Terms
Flow Chart of Sylff Endowment Management
1. Purpose of Endowment Management
2. Separate Accounting / Pooled Investment
3. Investment Guidelines
A. Principles
B. Exceptions
C. Currencies of Investment
4. Sylff New Financial Scheme
5. Revision of Agreement

10GLOSSARY OF FINANCIAL TERMS
Administrative expenses
Administrative expenses refer to a university’s operating costs in the administrationof the Sylff program and management of the Sylff endowment.
BudgetThe budget refers to the income and expenditure plan, which serves as the basis forthe allocation of fellowships.
CapitalThe capital consists of the following: the original capital of 1 million US dollars andthe reserves (explained below).
Earnings
Earnings are the sum of realized gains and changes in unrealized gains (explained
below).
Expenditure
Expenditure refers to administrative expenses, as mentioned above, and fellowshipdisbursements.
Fellowship
A fellowship refers to the funds provided to students who are selected as Sylff
fellows.
Income / realized gain
Income refers to realized gains, such as interest from bank deposits and coupon
interest from bond investments, as well as gains or losses from the sale of equities
and bonds.
Original capitalThe original capital is the 1 million US dollars (or equivalent if converted intoanother currency, using the exchange rate at the time of conversion) donated toeach Sylff institution. If the original capital is divided into two or more currencies,
the amount for each currency should be calculated using the exchange rate at thetime of initial conversion.
Reserves
The reserves are the part of capital that exceeds the amount of the original capital(US$1 million).
Unrealized gain
An unrealized gain is the difference between the book value and market value ofequity and bond investment.

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Flow Chart of Sylff Endowment Management12

1. PUPRPOSE OF ENDOWMENT MANAGEMENTThe Sylff endowment should be managed:(1) To generate sufficient income in accordance with the medium- to long-term plans
for the fellowship program(2) In a way that ensures the gradual growth of the capital without allowing it to fall
below the amount of the original capital (US$1 million).

2. SEPARATE ACCOUNTING / POOLED INVESTMENT
In principle, each institution is required to maintain a separate account for the Sylff
endowment from other funds of the institution. In cases where the capital is pooled
and invested with other funds, the amount of the Sylff capital and its income must be
clearly demarcated. Generally, pooled investments are approved when an institution’spooled fund is large enough to achieve higher returns by scale and when fundmanagement is conducted by groups of experts in accordance with rules approved by
the institution’s board as being transparent and accountable with clearly identified
risks, returns, and responsibilities.

3. INVESTMENT GUIDELINES
A. Principles(1) Basic Policy
The Sylff endowment must be invested in a “safe and secure manner,” as follows:a. Financial instruments in which the endowment may be invested include:—Term deposits at banks rated A-/A3 or better by Standard & Poor’s, Moody’s,or Fitch, and/or—Bonds rated A-/A3 or better by Standard & Poor’s, Moody’s, or Fitch.
b. Diversification:
Bond investments should be well diversified, avoiding concentration in terms of
issuers, industries, and countries. Bonds of any single industry or country should
not exceed 40% of the total. However, diversification is not necessary for bondsof government and supra-national issuers whose credit ratings are AA-/Aa3 or
better.
(2) Reporting
A financial report must be submitted within three months following the end of eachfiscal year. The report should include:13

a. Income-Expenditure Statement and Breakdown of Capital (Attachment 3, p. 21)*b. Bond Portfolio (in case of bonds) and/or Description of Term Deposits (in case ofbank deposits) (Attachment 4, p. 22)*c. Review Report confirming the validity of the above statements (Attachment 6, p.
24)**
d. Bank statement(s) showing the amount of cash, term deposits, and bonds at theend of the fiscal year corresponding to b. above.
* Bond amortization: If a bond is purchased at a premium, the amount of the premiumthat is amortized should be deducted from both coupon interest and book value.
** Review Report: The Review Report may be prepared by an auditor or department
within the university not involved in writing the financial report. It need not be
prepared by outside professionals.
(3) Use of Income and Reinvestment
In accordance with Appendix 2 (Objectives and Scope of the Program) of theAgreement, each institution is required to reinvest a portion of income every year as ahedge against inflation and other forms of financial instability. Even when there is noprovision in the Agreement about how much to reinvest, the institution should, as arule, add 30% (or more) of income to the reserves and use the remaining 70% (or less)as expenditures for fellowships and administrative expenses. If the institution is unable
to adhere to these rules due to unavoidable circumstances, it should consult with theTokyo Foundation for Policy Research on their reinvestment plans before spending
more than 70% of annual income—or whatever amount that has been agreed upon.
Changes in reinvestment rules may be approved as a contingency measure inconsideration of the institution’s financial status, sustainability of the program, and/or
the proposed total program budget.2
Administrative expenses should not exceed 5% of total expenditures (see Flow Chart of
Sylff Endowment Management on p. 12).
Only realized gains may be used as expendable income. Although unrealized gains
may arise in the case of bonds whose market values can be assessed, these gains should
not be used as a source for expenditures, since market value will return to par atmaturity.
2

Rules on the Use of Income and Reinvestment are subject to change. Any amendments will beannounced before they are implemented.

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B. Exceptions(1) Basic Policy
If a Sylff institution, for historical or other reasons, wishes to invest in riskier financial
instruments, such as lower-rated bonds, stocks, or real estate, it will need to disclose
the breakdown of its investment and to demonstrate that it has the organization andcapacity necessary to manage such a riskier portfolio. Specifically, it will need to have(1) investment experts, either within or outside the university, and (2) an investment
management committee or equivalent organization to monitor risks.
For investment in riskier financial instruments, unrealized gains may be used to cover
expenditures, provided that certain conditions are met.
a. Rules determining the percentages of capital for targeted earnings and planned
expenditures must be clarified. These rules must be approved by the Sylff
steering committee and the Tokyo Foundation for Policy Research.
b. Actual medium- to long-term expenditures (over a period of about five years)
must not exceed 70% of actual earnings over the same period. (The percentage
may vary according to Sylff institution.)c. The capital must not fall below the amount of the original capital.
(2) Reporting
Please submit a financial report within three months of the end of each fiscal year. The
report should consist of:a. A consolidated financial report providing the allocation of assets, investment
performance, and a description of the investment management team set up to
manage the riskier portfolio (no prescribed format)
b. A statement for “Exceptions” indicating conformity with condition (1) b above(Attachment 5, p. 23)
c. Review Report confirming the validity of the above statement (Attachment 6, p.
24)** Review Report: The Review Report may be prepared by an auditor or department
within the university not involved in writing the financial report. It need not be
prepared by outside professionals.

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C. Currencies of Investment
The Sylff endowment must be invested in assets denominated in US dollars or othercurrencies stipulated in Appendix 1 (Management of the Fund). The endowment
should not be converted into any other currency. If, however, a Sylff institution has
been investing in local currency assets in accordance with a temporary measureeffective from July 2011 to June 2021, as outlined in earlier editions of the Operation
Manual, such investments may be retained in the local currency. The institution,
though, may not make any additional investments in the local currency after thisOperation Manual comes into force.

4. SYLFF NEW FINANCIAL SCHEME
In the light of the difficulty many Sylff institutions have been facing in generating
sufficient investment income, a new financial scheme was proposed to all institutionsin spring 2014 that enables universities to continue providing fellowships withoutworrying about endowment management.
An annual fellowship budget of up to US$50,000 is set aside for each institution thatchooses to participate in the new scheme. Institutions screen applicants and nominate
fellowship candidates to the Tokyo Foundation for Policy Research, which will conduct
a review to confirm their eligibility (such as making sure that they are graduate
students in the humanities or social sciences). After formalizing the selection of fellows,
the Tokyo Foundation for Policy Research will disburse fellowships directly to
successful candidates.
The aim of the new financial scheme is to enable Sylff institutions to continue offering
fellowships in an uninterrupted manner. To participate, institutions are first requested
to return the Sylff endowment and to sign a three-party agreement with The Nippon
Foundation and the Tokyo Foundation for Policy Research. To learn more about thescheme, please refer to the Operation Manual of the (new) Sylff Fellowship Program,available upon request.

5. REVISION OF AGREEMENT
See Part I, Section 5.

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III. REPORT FORMS(Attachments)

17III. REPORT FORMS
Attachment 1. Program Report
Attachment 2. Sylff Fellows Information Sheet
Attachment 3. Income-Expenditure Statement / Breakdown of Capital
Attachment 4. Bond Portfolio / Description of Term Deposits
Attachment 5. Statement for “Exceptions”
Attachment 6. Review Report

Institutions, in PRINCIPLE (see Part II, Section 3 A), should submit attachments 1, 2, 3, 4,
and 6. Those falling under the EXCEPTIONS (see Part II, Section 3 B) category, however,should submit attachments 1, 2, 5, and 6.
You can download sample files from the link below:
https://www.sylff.org/administrators/operation-manual/18

Attachment 1

19

Attachment 2

20

Attachment 3

21

Attachment 4

22

Attachment 5

Statement for "Exceptions"(for the fiscal year ended [Mar. 31, 2016])[Apr.] 2015[Mar.] 2016
Capital, beginning of year
Earnings (A)Expenditures (B=C+D)
Fellowships (C)Administrative expenses (D)Capital, end of year
Original capital

3,443,999
362,514
127,842
121,450
6,392
3,678,671
1,000,000

2014-152013-143,240,217
330,135
126,353
120,035
6,318
3,443,999

3,212,274
150,034
122,091
115,987
6,104
3,240,217

Currency [ ]2012-132011-123,744,561-420,807
111,480
105,906
5,574
3,212,274

3,391,820
437,150
84,40980,1894,220
3,744,561
B/A

Five-Year
Total
859,026
572,175
543,567
28,60867%(note)

Note:
Five-year cumulative expenditures should be less than 70% of five-year cumulative earnings. (The percentage may vary
according to Sylff institution.) See Part II, Section 3 B (1).

23Attachment 6

24

List of Sylff Institutions

Parentheses indicate the year Sylff endowment was established.

Australia•
UNSW Business School (1991)

Jordan⚫
University of Jordan (2003)

Austria•
University of Music and Performing Arts Vienna**(1996)

Kenya•
University of Nairobi (1989)

Brazil•University of São Paulo (1988)
Bulgaria•
Sofia University "St. Kliment Ohridski" (1992)
Canada•York University (1989)
Chile•
University of Chile** (2002)
China•
Chongqing University (1994)•
Fudan University (1992)•
Inner Mongolia University (1994)•
Jilin University (1992)•
Lanzhou University (1992)•
Nanjing University (1992)•
Peking University (1992)•
Sun Yat-sen University (1994)•
Xinjiang University (1994)•
Yunnan University (1994)
Czech Republic•Charles University** (1995)
Denmark•
University of Copenhagen (1991)

Latvia•University of Latvia** (2002)
Malaysia•
University of Malaya** (1990)
Mexico•El Colegio de México (1992)
Mongolia•
National Academy of Governance** (1992)
The Netherlands•
Utrecht University** (1994)
New Zealand•
Massey University* (1991)
Auckland University of Technology
Lincoln University
University of Auckland
University of Canterbury
University of Otago
University of Waikato
Victoria University of Wellington
Norway•University of Oslo (1989)
The Philippines•
Ateneo de Manila University (2002)

Egypt•
The American University in Cairo (1992)

Poland•Jagiellonian University (1992)

Fiji•
The University of the South Pacific (1988)

Portugal•
University of Coimbra** (1993)

Finland•
University of Helsinki (1991)

Serbia•University of Belgrade** (1988)

France•Conservatoire national supérieur de musique et dedanse de Paris** (1988)•
INSEAD (1988)

Slovakia•
Comenius University in Bratislava** (1995)

Germany•
Ruhr University Bochum** (1996)•
University of Leipzig** (1992)

Spain•
University of Deusto** (1992)

Greece•National and Kapodistrian University of Athens**(1993)
Hungary•
Hungarian Academy of Sciences* (1989)
Corvinus University of Budapest
Debrecen University
Eötvös Loránd University
Szeged University
University of Pecs
India•
Jadavpur University (2003)•
Jawaharlal Nehru University (2003)
Indonesia•
Gadjah Mada University** (2004)•
University of Indonesia (1990)
Israel
•Ben-Gurion University of the Negev (1989)
Italy•
Institute of Political Education "Pedro Arrupe"**(1992)
Japan⚫
Keio University (2000)⚫
Ritsumeikan Asian Pacific University (2009)⚫
Waseda University (2001)

South Africa•
University of the Western Cape** (1995)

Sweden•Uppsala University (1988)
Switzerland•
The Graduate Institute ofDevelopment Studies** (1989)

International

andThailand•
Chiang Mai University (1990)
Turkey•Ankara University (1988)
United Kingdom•
University of Sussex (1988)
USA•
Columbia University (1991)•
Howard University (1991)•
University of Oregon* (1991)
Oregon State University
Portland State University•
Princeton University (1989)•
The Juilliard School (1998)•
The University of Texas at Austin (1991)•
The Fletcher School of Law and Diplomacy, Tufts
University (1987)•
University of California, Berkeley (1991)•
University of California, San Diego (1991)•
University of Michigan(1991)•
Yale University (1989)
Vietnam•Vietnam National University, Hanoi* (1999)
Viet Nam National University Ho Chi Minh City

*This institution administers the Sylff endowment on behalf of the university(ies) listed below.
**This institution operates the Sylff program under the new financial scheme.