The Finance Group (a committee of Council) reviewed the University's approach to investment of funds at its meeting on 28th February 2011 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 7th March 2011 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:
- 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 permanent endowment funds have been invested in a single fund, known as Consolidated Fund No 1 (CF1), currently managed by Barclays Wealth. 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)
- General university funds are held in current/overnight accounts or are invested 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/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.
- To realise the existing CF1 fund and re-invest in a suitable SRI fund, based on appropriate external advice and approval of Council.
General university funds
- In view of the large balances involved, the limited number of UK based banks and building societies available, and the short-term nature of the deposits it is not considered appropriate to further restrict investment options in this area. It is therefore proposed that the current approach continue unchanged at this stage.
Subsequent review
This statement will be updated when the revised arrangements are in place, including details of the selected investment funds. 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
