Jim McGillJSenior VP for Finance and Administration

Johns Hopkins University (retired)

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Governing Board

Investment Finance C iCommittee Committee

Faculty Donors

SVP/EVP/CFO

Faculty

Students Development

Donors

CIO

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Stude ts Development Staff

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C i E i1. Comparative Economics2. Control

• Fiduciary responsibility• Division of responsibility

b t i tit ti dbetween institution and investment manager

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1. Investment Committee • SizeSize• Composition

2. Relative roles of CIO and C ittCommittee• Asset allocation• Benchmark selectionBenchmark selection• Manager selection• Performance reporting

St ffi d i i• Staffing decisions

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1. Make money with controlled riskO h d i2. Other duties• Serve mission and objectives of

organizationorganization• Understand , acknowledge, participate

in broad, strategic, financial matters of parentparent

• Always appreciate the primary interests of parent

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1. Institutional liquidityq y• Not just endowment investment risk,

but need for institutional liquidityE d t t i tit ti l• Endowment payouts, institutional dependence on capital markets (e.g., variable rate debt)capital calls

2. Reputational risks

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1. Relate to faculty, students and donorsf l h f l• Some faculty with professional investment interests;

others in monitoring administration• Some student directed investments

2. Positional politics, e.g., apartheid, Darfur, sweat shops, etc., etc.

3 Serve on institutional committees risk3. Serve on institutional committees – risk management, capital planning, benefits, etc.

4. Broader community service• Philanthropic entities – boards, investment committees• Institutional professional groups, e.g., NACUBO

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