spruce branch showing new growth The Unitised Scheme is a unit trust vehicle for College, Faculties and Departments to invest endowments and unfettered income for the long term (5+ years). The Unitised Scheme is run with an investment target of RPI + 4% over a rolling 5 year period with volatility less than 1 times that of global equity markets. Invested funds are managed by independent fund managers with a mandate to deliver these objectives. The intention is to preserve the capital value of the fund whilst supporting an annual distribution of 4%.

As a unit trust vehicle, the Unitised Scheme’s total value is made up of a number of units of an equal value, with each unit representing a share of the total portfolio. The units are valued on a quarterly basis.

There are two types of unit available:

  1. Income Units are those where the underlying capital cannot be accessed. These are appropriate, for example, when permanent endowments are received to fund an activity in perpetuity.
  2. Redeemable Units are those where the underlying capital can be accessed.

Investors 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. In addition they will receive quarterly reports summarising the overall fund performance and the resulting impact on their investment.

For more information about the Unitised Scheme please contact us (login required).