Investments and Endowments

We provide accounting and reports for investments, liaising with investment consultants, fund managers, individual endowment fund-holders and the Investment Committee.

Investment Portfolio

Funds are invested in the University of Edinburgh Endowment and Investment Fund.  To diversify risk investments are spread over various fund managers and different types of asset.  The total investment is pooled and individual endowment fund-holders and the University treasury own units of this pool. As the value of the pool fluctuates so the unit value fluctuates. As more money is invested the number of units increases the new investor buying at the market value of a unit at the time of investment.

Fund Managers

Each month we receive valuation reports from our fund managers.  This data is recorded in e-financials. We record the type of asset invested in and the fund manager movements.

We receive income from each fund manager and are charged fees.  Each fund manager has its own distribution policy which means we receive income annually, semi-annually and quarterly.

Endowment Fund Holders

When bequests are transferred to the University from the Development Trust they are allocated to an individual fund-holder who is responsible for ensuring that the funds are spent in accordance with the wishes of the donor.  Bequests are invested to provide an income stream.

Monthly cascade of data

Every month we cascade the change in market value, the income earned and management fees to individual endowments and other unit holders.  This provides the basis for reports which are available from BI Suite, e-financials and WebFirst.

Investment Consultants

The purpose of the consultant is to advise the Investment Committee, to provide reports on the fund managers’ performance, ad hoc reports as required and to help in the investing and disinvesting process.

Custodian

The custodian holds our investments, provides monthly unit value and direct investment values and overall performance reports.

Investment Committee

The Investment Committee is responsible for the oversight and strategic direction of investments.  Its members are appointed by the University of Edinburgh Court, and are drawn from both Court members and external investment professionals.

Each year an Endowment Fund Report is published.  This gives, amongst other matters, details of the Investment Committee and its remit, the Fund managers and statistics relating to the investments and endowment funds.