Information for Unitholders
The College, Faculties and Departments can invest in the Endowment’s unit trust vehicle. The unit trust vehicle provides unitholders with exposure to a range of assets so that their holding is diversified.
The unit trust vehicle is currently composed of the Endowment's Property and Marketable Assets portfolios. The Endowment's third portfolio, Strategic Asset Investments, will be be unitised by 31st January 2020.
The total value of the unitised portfolios are made up of a number of units of an equal value, with each unit representing a share of the total. The units are valued on a quarterly basis.
Depending on the nature of the source of the Endowment two types of Unit are available:
- ‘Income Units’ where the underlying capital cannot be accessed. These are appropriate when permanent endowments are received to fund an activity in perpetuity.
- ‘Redeemable Units’ where the underlying capital can be accessed on the basis that the Capital may be applied to a specific purpose in the future or where the activity is not intended to be supported in perpetuity.
Unitholders can either acquire or redeem units on a quarterly basis and, whilst invested, will receive a monthly distribution at an annual rate set at the start of each financial year. Unitholders will receive quarterly reports summarising the overall fund performance and the resulting impact on their Units.
The Endowment also operates cash accounts as straight forward deposit accounts for College, Faculties and Departments to deposit funds either prior to investment or to hold on deposit in the short to medium term (less than 5 years). These cash accounts are not actively managed by the Endowment and return the College’s corporate deposit rate as achieved by the Treasury team.