Indiana University Foundation

Generated outreach message alignment report
1. You maintain explicit allocations to absolute return and hedged equity funds (e.g., a 5% target to Absolute Return), signaling ongoing appetite for low-correlation hedge fund strategies.
A concentrated, high-conviction, low-correlation hedge fund can fit your Absolute Return and hedged equity buckets and complement equity risk with idiosyncratic global/EM alpha.
Evidence
“Absolute return 5.0% 2.5% 5.0% 1.6%” “Absolute return funds 480,424 ‒ ‒ ‒ 480,424” “Hedged equity funds 114,960 ‒ ‒ ‒ 114,960”
2. You implement through commingled/NAV-priced external pools with frequent liquidity and no unfunded commitments.
A boutique fund offered via a commingled vehicle with institutional reporting and regular liquidity aligns with your preference for NAV-based structures.
Evidence
“The university holds shares or interests in commingled funds where the fair value of the investment is measured on a recurring basis using net asset value per share (or its equivalent)... There is no unfunded commitment, and the investments can be redeemed twice a month with a 15-day redemption notice period.” “The fair value of the external investment pool... is determined using a monthly valuation... There is no unfunded commitment, and the investments can be redeemed daily with no redemption notice period.” “Investments measured at the net asset value (NAV): External investment pool 558,131”
3. You run a formal, ongoing manager selection process (RFI), meet directly with managers, and require monthly reporting and SEC registration (unless exempt).
An entrepreneurial, owner-managed firm that is SEC-registered, provides robust monthly reporting, and can participate in an RFI aligns with your due-diligence and oversight framework.
Evidence
“For the IUOF, IUCF and IUMF, gather all data through a Request for Information (“RFI”) process and make recommendations to the UIC with respect to the selection of new investment managers...” “Meet with investment managers of the IUOF as appropriate. The purpose of each meeting is to evaluate that manager’s depth of staff, organization, security, compliance with investment guidelines, performance, outlook...” “Report monthly to Indiana University and to any investment consultant identified by the university regarding the status of the portfolio and its performance...” “Register and retain that registration under the Investment Advisors Act of 1940 and Securities Exchange Commission Acts, unless exempted from registration by the SEC.”
4. You allocate globally across U.S. and international equities and explicitly use domestic and international equity index funds.
A global, high-conviction manager with emerging-markets capability can complement broad index exposures with targeted alpha outside the U.S.
Evidence
“International equities 238,907” “IV Domestic and International Equity Index Funds Highest potential returns over the long-term” “In 2024, the allocation to equities contributed to investment performance, as stocks experienced significant growth worldwide...”
5. You emphasize long-term, equity-biased total return and operate with a stable 4.5% spending policy.
A manager with a long, consistent track record and owner-operated alignment fits a long-horizon, return-focused program supporting stable distributions.
Evidence
“Since its inception, in 1989, the portfolio has posted an average annual return of 8.9%, consistently surpassing internal goals and comparing favorably versus the performance of peer institutions.” “Given the long-term horizon, Indiana University benefits from allocating a portion of its portfolio towards equities.” “The spending policy of the IU Foundation is to distribute 4.5%, banded for inflation, of the twelve- quarter rolling average of pooled long-term fund share values...”
6. You explicitly seek diversification and lower correlations, including using tiers as ballast and maintaining a sizable risk-parity allocation.
A low-correlation, high-conviction strategy can serve as a diversifier and risk ballast alongside core equity and risk-parity exposures.
Evidence
“The goal of this analysis was to invest in high-quality assets with higher potential returns and lower correlations.” “In particular, tier III has served as a ballast to equity risk.” “Risk parity 20.0% 6.3% 20.0% 5.9%”
7. You are actively adding managers and publicly invite best-in-class managers to reach out.
An entrepreneurial boutique with a differentiated, global best-ideas approach can enter your pipeline proactively when you are reviewing and hiring new managers.
Evidence
“the table of investment managers was updated in order to reflect recent changes with respect to portfolio rebalancing and the hiring of new investment managers.” “Our investment team is always looking for best-in-class investment managers and solutions to help us meet our goals. Please email invest@iu.edu if you are interested in beginning a conversation, and we will respond if the opportunity is a potential fit for”