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. At its meeting on 7th March 2011, Council approved proposals to extend the restrictions on investments to cover a broader range of ethical and environmental issues. The Finance Committee was charged with progressing these changes and to review and report on progress annually
As from January 2018, the investments have been transferred to the Barclays Charity Fund, due the previous investment provision known as Consolidated Fund No 1 (CF1) was no longer able to support investments below £10m.
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.
Finance Group annual review of investment policy implementation
The Finance Committee (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 have been taken to implement the new approach as outlined below. The investment policy was last reviewed by the Finance Committee in February 2019.
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
Restricted endowment funds
In respect of 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) or investment in government securities.
The investment approach will be reviewed annually by the Finance Committee (a committee of Council) and will be reviewed by Council every three years. Comments are welcomed at any time and should be forwarded to Finance@uea.ac.uk.