California State University San Bernardino

The Investment Committee meeting included an overview of the 3rd Quarter Portfolio Performance, noting strong gains in the S&P 500 and significant outperformance in international and emerging markets. Discussion addressed equity valuations, particularly concerning technology stocks, and the importance of diversification across alternative investments and fixed income to mitigate risk. The committee reviewed the portfolio transition details, including performance for the two-month transition period and updates on alternative investments like Beacon Point and new credit and infrastructure fund allocations. The liquidity pool balance and the planned Q4 2025 redemption of the Kimpact position were discussed. Regarding Foundation Financial Statements, the review was postponed due to income not being updated, but supplementary appendices detailing balance sheet and income statement accounts were presented and deemed helpful. The committee debated a request to maintain a $1.0 million liquidity cushion in the SWIFT fund due to slower transfer times from the new OCIO manager (Graystone); further analysis on cash flows was requested for the next meeting. The Executive Director reported on recent endowment gift movements, confirmed plans for a gala in honor of President Morales, and expressed interest in expanding the Foundation's role in co-trustee and split-interest planned-giving vehicles.

The Investment Committee meeting included a high-level market and portfolio update from Beacon Pointe, noting strong U.S. economic resilience despite stalled inflation, leading to a 'no landing' scenario expectation where interest rates remain higher for longer. The committee discussed portfolio adjustments, favoring U.S. equities over fixed income and international equities. A key action taken was the replacement of the MetWest Total Return Bond Fund with PGIM, involving the reallocation of approximately $6.6 million. Alternative investments, particularly private real estate, were reviewed with positive long-term expectations. The committee scheduled RFP finalist interviews and reviewed the foundation's financial statements as of December 31, noting strong investment income of approximately $7 million driven by endowment performance. Furthermore, a detailed update on the CSU system-wide budget outlook highlighted a significant projected shortfall for CSUSB, leading to a discussion on aligning foundation support with university priorities such as student success.

Key discussions included updates on commencement weekend, a significant $6 million gift to name the School and Center for Entrepreneurship, and a slight reduction in projected CSU system-wide cuts in the Governor's May Revise. The committee reviewed the first quarter portfolio performance, noting a contraction in U.S. GDP and continued inflation pressures, while Beacon Pointe concluded its engagement, with Graystone set to assume OCIO management. Financial statement review highlighted total assets of $82M, and the proposed Fiscal Year 2025-2026 budget was approved, which included conservative investment assumptions and increased contracted services costs due to CSU allocations. The committee also discussed aligning short-term investments and updating the reserve policy.

Key discussion points during the meeting included an update on federal issues from the Advocacy and Community Relations Committee, noting potential changes to the Federal Pell Grant program and risks to federally funded programs. The Alumni Association reported on summer engagement events and board member recruitment. The Audit Committee confirmed that CLA would not be seeking alternative firms currently. The Board Membership Committee reported nominations for upcoming Board appointments, including Nefertiti Long as Chair and Louis Monville as Vice Chair, which were subsequently approved. The Investment & Finance Committee provided an update on the transition from Beacon Point to Graystone for investment management. The Philanthropy Committee reviewed potential supporters for relationship building. The Director's Report mentioned the upcoming honoring of William Stevenson and Carson Fajardo related to the Randall Lewis naming. Open discussion covered the Advocacy Committee's plans to review membership and quorum requirements, and interest in adding non-voting board members.

The Executive Committee meeting focused on committee reports and open discussion topics. The Executive Director outlined priorities, including strengthening board engagement and structuring future meetings for candid discussion. The Alumni Association reported on the expansion of the Professor for a Day program, the success of the 66ers Night event, and the upcoming 60th anniversary celebration. The Audit Committee presented a draft audit with no areas of concern. The Board Membership Committee introduced ad-hoc members for board committees. The Investment & Finance Committee presented the new operating budget and updates to the Investment Policy Statement, emphasizing refinements to alternative investments. The Philanthropy Committee reported on expanding education and engagement opportunities to align donor interests with university initiatives. During open discussion, campus life engagement was noted, and suggestions were made for streamlining future consent agendas.