1 Del. Admin. Code § 1201-8.0

Current through Register Vol. 28, No. 7, January 1, 2025
Section 1201-8.0 - Endowment Accounts
8.1Investment Objectives. Endowment Accounts are funded with State Funds to be preserved and grown over time with a portion of the investment income and/or appreciation thereon withdrawn periodically to provide for specified legislative purposes. The primary objective of such Accounts is to create a perpetual fund whereby returns are maximized over the long term while ensuring safety of the corpus and the availability of amounts prescribed to meet the periodic liquidity requirements of the permitted withdrawals.
8.2Permissible Investments and Percentage of Account Limitations. State Funds held in Endowment Accounts can be invested solely in the types of securities set out in this subsection 8.2. Each Endowment Manager is further subject to (i) limit the aggregate value of State Funds invested in each type of security held in the account under such manager's discretion to the "Percentage Maximum" of such security type identified in this subsection 8.2, measured as a percentage of the total account value of State Funds under such manager's discretion, and (ii) maintain a minimum of the aggregate value of State Funds invested in each type of security held in the account under such manager's discretion to the "Percentage Minimum" of such security type identified in this subsection 8.2, measured in each case as a percentage of the total account value of State Funds under such manager's discretion.
8.2.1Money Market Funds
8.2.1.1 Definition: Open-end money market mutual funds that are invested solely in government securities (as defined in subsections 6.3.1 and 6.3.2) and which are rated in the highest rating category by at least one NRSRO.
8.2.1.2 Percentage Maximum: 30% in total.
8.2.1.3 Percentage Minimum Limit: none.
8.2.2Domestic and International Equities
8.2.2.1 Definition: Common and preferred stocks of companies domiciled both within the U.S. and outside the U.S. that trade on U.S. or foreign exchanges and over the counter. Ownership in a publicly traded company, whether common or preferred, that trades on globally recognized exchanges, and issued by corporations, both foreign and domestic.
8.2.2.2 Percentage Maximum: 75% in total; no more than 35% of which are in international equities.
8.2.2.3 Percentage Minimum: 45% in total; no more than 35% of which are in international equities.
8.2.3Domestic and International Fixed Income
8.2.3.1 Definition: Debt securities of U.S. and non-U.S. governments, public agencies, corporations and other non-government entities.
8.2.3.2 Percentage Maximum: 55% in total, including securities permitted under subsection 8.2.4.
8.2.3.3 Percentage Minimum: 25% in total, including securities permitted under subsection 8.2.4.
8.2.4Alternative Investments
8.2.4.1 Definition: Securities not otherwise permissible pursuant to subsections 8.2.1 - 8.2.3 that a prudent manager would deem appropriate for portfolios of like character with comparable investment objectives, excluding hedge funds or other blind pool funds that incorporate leverage as part of their investment strategies.
8.2.4.2 Percentage Maximum: 25% in total.
8.2.4.3 Percentage Minimum: none.

1 Del. Admin. Code § 1201-8.0

20 DE Reg. 491 (12/1/2016) (Final)
23 DE Reg. 584 (1/1/2020) (final)