1607 - Investment and Withdrawal of Unrestricted Endowment

Document purpose

To provide guidance of school/center direction of AIF investment and withdrawal

effective

January 2009

revised

November 2020

Reviewed

November 2020

Responsible Office

Treasurer

Approval

Treasurer

The Policy

The AIF fund is designed to be a long term investment vehicle. AIF is invested in a variety of different asset classes and vehicles. Some of these investments are illiquid and involve long term contractual lock-ups. This is particularly true of alternative investments. Large unanticipated outflows from the endowment could pose both liquidity and asset allocation challenges. The AIF investment pool is not an appropriate vehicle for investments with relatively short time horizons.

All investments of unrestricted funds into the AIF pool must be made for a minimum duration of five years. These investments must be approved by School/Center Finance Office.

The Treasurer’s Office will evaluate any request for liquidation to ensure requested funds meet the five year minimum. Any exception to this policy must be approved by the Vice President for Finance. All requests for liquidation from AIF must be provided three months in advance for requests greater than $1 million and one month in advance for requests below $1 million.

Withdrawals of term endowments are subject to donor agreements and are not subject to this policy.