As stewards of excess capital and various endowed funds (i.e funds that have been committed/ donated for a long-term initiative) for BITSAA International, the BITSAA Investment Committee (BIC) aims to generate proceeds, via investment income and capital appreciation, primarily to fulfill the obligations towards these endowed initiatives. The BIC endeavors to achieve its objectives via appropriate investments within a combined investment portfolio called theBITSAA Endowment Fund (BEF).
The BIC team, led by Chief Investment Officer, Rajesh Chelapurath (’88) and supported by Raja Sekhar Vannela (’01), currently manages the BEF using a conservative value-based investment philosophy oriented towards long-term protection of principal and an emphasis on absolute rates of return. Keeping the liquidity needs of the various endowed initiatives in mind, the BEF is invested in an appropriate mix of globally diversified investment mix, comprising best of breed mutual funds and ETFs.
The Investment Policy Statement (IPS) dictates the policies and standards that govern the management of the BEF. This document (please see the latest version below) also captures all aspects of the operations of the BIC and BEF and is updated/published on a semi-annual basis. The BEF has grown over the years (since its inception value of approx. $10,000 in April, 2003), via a combination of investment returns and new endowments, to $356,557 (12/31/2017 close) reflecting an average annualized return of +5.4% (incl. significant portions of the fund in cash assets dictated by needs) since inception.