Claremont Investment Fund

“Claremont mckenna college provides management and investment management services to claremont investment fund (through an intermediary services agreement with claremont investment management company). The officers of claremont investment fund are paid and employed by claremont mckenna college. The compensation paid to the officers for services provided to the filing and related organizations is listed on form 990, part vii, section a.”

“Several minor modifications were made to the cif bylaws to update position and policy titles: -chair instead of chairman -chief financial officer instead of treasurer -interested party transactions policy instead of conflict of interest policy the bylaws were also amended to include the addition of a vice-chair of the board to allow for improved succession planning.”

“Claremont mckenna college shall be entitled to appoint all the directors of the corporation. Claremont mckenna college, in its sole discretion, may consider nominations for candidates to serve on the board of directors provided by one or more other supported organizations of the corporation. Therefore, harvey mudd college has the power to nominate candidates to serve on the board of directors, but the appointment must be approved by claremont mckenna college.”

“The fund utilizes a process for review of irs form 990 that involves multiple layers of management, as well as governing board members. The fund has engaged an outside accounting firm to prepare the 990 using information provided by management and the claremont colleges services' office of financial services. Once a draft has been prepared, it is reviewed by individuals in the office of financial services and members of management of the fund. Once the comments are answered and any issues resolved, the 990 is provided to all voting members of the board of directors prior to filing.”

“Officers, directors, and key employees are required to annually sign and submit to the cfo a statement disclosing all material financial interests of the individual or immediate family members in any outside entity in which the fund has or is considering a transaction or other business relationship. The cfo creates a summary report of these and any other known conflict of interest disclosures for review by the audit committee. All transactions in which the audit committee has determined that a conflict exists are approved or ratified by the board of directors.”

“Corporate officer and key employee compensation determination is performed on an annual basis by a related organization and includes the following elements: 1) use of data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated organizations, 2) review of comparable compensation data and approval of compensation arrangements by a compensation subcommittee of the executive committee of the board of directors, and 3) contemporaneous documentation with respect to deliberations and decisions regarding compensation arrangements. Data as to comparable compensation is derived from one or more of the following sources: a) information compiled from irs form 990 reports, b) other regional or national compensation surveys, including an annual compensation survey published by the college and university professional association for human resources, and c) external consultant surveys and/or databases, including prevailing market compensation for similar administrative positions in the greater los angeles area.”

“Governing documents and financial statements are available upon request.”

“Income from k-1's -5,291,067. Participant distributions -16,500,000.”