8.2 Short-Term Investment
Introduction #
The University of Tennessee Foundation (UTFI) establishes the following policy governing investment of current and plant funds. Current and plant funds are defined in 6.3 Gift Management.
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.
Investment Objectives #
The assets in the current and plant funds exist to meet both the expected daily cash requirements of UTFI and UTFI’s obligation pursuant Article II, Section 2(c) of the Affiliation and Services Agreement between UT and UTFI to transfer funds from the Foundation to the University to cover complying expenditures from the University parallel account each June 30. Accordingly, the investment philosophy for current and plant funds are to:
- Maintain the principal in the fund,
- Provide necessary liquidity to meet UTFI’s requirements and obligations, and
- Maximize the return on the investments held in the fund.
The Board of Directors is authorized to approve investment target allocations, strategy and custodial/consulting services in accordance with these investment objectives.