8.1 Endowment Investment and Spending

Introduction #

The University of Tennessee Foundation (UTFI) establishes the following endowment investment, asset allocation, disbursement and spending policy. The short term investment of current, plant and operating funds is addressed in Policy 8.2 Short Term Investment.

UPMIFA #

UTFI follows the endowment management guidelines set forth in the Uniform Prudent Management of Institutional Funds Act as adopted by the State of Tennessee, TCA §35-10-201, et. seq.

Consolidated Investment Pool #

Except when circumstances require or warrant separate investment, gifts for endowment funds will be co-mingled and invested in the UT Consolidated Investment Pool. See also Policy 6.3 Gift Management. Accordingly, UTFI adopts the UT Investment Policy and Procedures for the Consolidated Investment Pool.

Separately Invested Endowments #

UTFI is obligated to observe scrupulously any investment requirements or limitations imposed by donors of a fund to the extent it is legal to do so. In such instances, UTFI has limited investment discretion and, in order to meet the specified obligations, handles each such fund as a separately invested entity with unique investment objectives. Some endowments are funded with illiquid assets that cannot be pooled. The practice in these instances is to treat them as separately invested until such time as the asset can be sold and the proceeds pooled.

Spending #

Because endowment funds are co-mingled and invested in the UT Consolidated Investment Pool, UTFI adopts the UT endowment spending policy.