The Finance Group (a committee of Council) reviewed the University's approach to investment of funds at its meeting on 14th November 2012 and agreed a number of changes to ensure that long term investments are made in sustainable and ethically appropriate funds.  The University Council approved this change in approach at its meeting on 19th November 2012 and steps are now being taken to implement the new approach as outlined below.

Outline investment policy statement - approved by Council 7th March 2011

Background  
The University of East Anglia has historically invested its funds in the following manner: 

• Permanent endowment funds have been invested in a single fund, known as Consolidated Fund No 1 (CF1), currently managed by Barclays.  The original fund, initially managed in-house, was first established in 1964.  In 2005, in response to proposals from the student union, a restriction was introduced to exclude investment in companies involved in the armaments industry.  (To see the precise form of current restrictions applicable to this fund, please click here)
   
• Investment of certain restricted endowment funds has been carried out in consultation with the two original donors, who have based their ongoing donations to the University on the investment returns achieved.

• Other restricted endowment funds are invested along with the university's general funds in current/overnight accounts or in short-term deposits.  In order to minimise the risk of loss, following the recent banking crisis, only UK based banks and building societies are currently being used for term deposits.

Agreed changes
The University now intends to introduce a more comprehensive approach to ethical investment, including environmental management issues, and is pursuing the following actions to take this forward:

Permanent endowment funds

• To invest the CFI Fund in the following restricted categories:-
  *  UK Government securities
  *  Investment in pooled funds that are actively managed on an SRI basis
  *  Direct investment in equities and bonds, restricted to companies that meet the FTSE4 Good Index Inclusion Criteria
  *  Cash on deposit
  The aim is to complete the transition onto this basis by 28 February 2013.

Restricted endowment funds
 

• To agree a suitable SRI based approach with the two donors that maintain an involvement in investment of donated funds and to re-invest funds accordingly. 
   
• In respect of other restricted endowment funds it is proposed to continue with the current policy of investment in short-term bank deposits, which is governed by the Treasury Management Policy (PDF)

Subsequent review
The investment approach will be reviewed annually by the Finance Group (a committee of Council) and will be reviewed by Council every three years.  Comments are welcomed at any time and should be forwarded to web@uea.ac.uk