FLORIDA STATE UNIVERSITY FOUNDATION BOARD OF TRUSTEES
1–2 p.m. | Zoom Video Conference

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I. WELCOME AND CALL TO ORDER — Ashbel C. Williams Jr., Chair

Chair Ash Williams called the meeting to order at 1:04 p.m. Roll was taken, and a quorum was present. Two reporters, Samuel Karasek and Colin Rajala, were also present.

II. APPROVAL OF MINUTES — Williams

The minutes from the May 4, 2020, Investment Committee meeting were approved as presented.

III. NEW BUSINESS

A. Market Update and Portfolio Review — Cambridge Associates

Kerry Kirk of Cambridge Associates began with a brief review of the performance of various global asset classes. He highlighted Facebook, Amazon, Netflix and Google (FANG) stocks performance versus different indices, reviewed global asset performance by style and factor and ended his commentary with remarks on how Federal Reserve actions helped fuel the initial economic recovery.

Steven Foertsch of Cambridge Associates reviewed the Foundation’s long-term portfolio preliminary performance as of June 30, 2020. He also compared the Foundation’s long-term portfolio performance to the performance of its benchmarks. Next, Foertsch provided some attribution for the Foundation’s long-term portfolio performance. Foertsch concluded by delivering a performance estimate for the Foundation’s long-term portfolio as of July 31, 2020. Committee Member Peter Collins asked about a global equity manager’s performance. Foertsch responded the manager has continued to struggle, but it performs as value managers tend to perform in this environment.

B. Public Equity Recommendation — Cambridge Associates

Foertsch began by describing one of the Foundation’s global equity manager’s investment approach and how it has performed. Foertsch explained the global equity manager’s current fee structure and Cambridge Associates’ recommendation to select a new fee structure while also partially redeeming from that manager to restructure the Foundation’s public equity portfolio. The committee discussed the advice and sought further clarification on the proposed fee structure. Foertsch answered the committee’s questions, and, after discussion, the committee agreed to accept Cambridge Associates’ recommendation.

Upon motion made by Committee Member Peter Jones and duly seconded by Trustee Kyle Riva, the committee voted to accept Cambridge Associates’ recommendation to move to the zero percent and 30% fee structure in an incumbent global equity manager and redeem $16 million from that manager.

C. Private Investments Update — Cambridge Associates

Sheila Ryan of Cambridge Associates presented a recommendation for the Foundation to commit €5 million to a growth equity manager and $5 million each to two real estate managers. Next, Ryan reviewed each of the managers with the committee. After discussing each manager, the committee agreed to accept Cambridge Associates’ recommendations.

Upon motion made by Trustee Riva and duly seconded by Trustee Bob Rice, the committee voted to accept Cambridge Associates’ recommendation to commit €5 million to a growth equity manager.

Upon motion made by Trustee Riva and duly seconded by Trustee John Lusk, the committee voted to accept Cambridge Associates’ recommendation to commit $5 million to a real estate manager.

Upon motion made by Committee Member Collins and duly seconded by Committee Member Jones, the committee voted to accept Cambridge Associates’ recommendation to commit $5 million to a real estate manager.

D. Donor Endowed Fund Request — Andy A. Jhanji

Interim Vice President for University Advancement and Executive Vice President of the FSU Foundation Andy Jhanji began by providing background on the donor’s request for the Foundation to return the endowed funds and conveying the university’s sentiment on the matter. EVP Jhanji then asked Dean and Chief Executive Officer of FSU Panama City Randall Hanna to explain the provisions of the donor’s gift agreement under question and mentioned he had consulted with the university’s legal counsel about the matter.

Dean Hanna explained that the provision in dispute states scholarships should be awarded to U.S. residents. This provision was met because the award recipient, a resident alien, received a bachelor's and master’s degree from FSU and thus qualified as a resident. After a discussion between the committee and Dean Hanna, it was decided to reject the donor’s request for a refund of their gift.

Upon motion made by Committee Member Collins and duly seconded by Committee Member Jones, the committee voted to deny the request of returning the endowed gift to the donor.

IV. OLD BUSINESS — Williams

Chair Williams informed the committee about a U.S. Department of State statement urging colleges and universities to divest any investments with exposure to China. Chair Williams encouraged the committee to stay informed on the matter. Kirk responded that Cambridge Associates is monitoring the situation as well.

Next, Kirk reminded the committee that they should review and affirm a U.S. equity manager surpassing the 10% portfolio allocation threshold. He also stated Cambridge Associates’ opinion on the manager has not changed. The committee discussed the manager and agreed to maintain the allocation of the U.S. equity manager as is.

Upon motion made by Committee Member Collins and duly seconded by Trustee Riva, the committee voted to keep the allocation of a U.S. equity manager above the 10% manager threshold outlined in the Foundation’s investment policy statement.

V. ADJOURNMENT — Williams 

There being no further business for discussion, Chair Williams adjourned the meeting at 2:46 p.m.

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Minutes were prepared by Senior Investment Accountant Keith Tolbert and respectfully submitted by:

Ashbel C. Williams Jr.
Chair
Investment Committee