The Investment Office oversees the majority of the assets invested for the benefit of the University of Tennessee. These include the long-term vehicles of the Endowment and Charitable Remainder Trusts, as well as the short-term Cash Operating Fund that supports the University’s day-to-day operations.

Endowment

The University’s Endowment takes a long-term approach to investing. Its primary objective is to achieve an annualized return greater than the rate of inflation plus spending, while managing risk through a full market cycle.  To that end, it has implemented a disciplined strategy that incorporates both active and passive management, depending on the target market or manager strategy. The University works with an outside consultant to find managers that possess a repeatable strategy, solid investment culture, and emphasis on risk management. This approach, implemented under an active governance structure, enables the University to maintain a long-term, strategic focus and avoid the distractions of short-term market movements. Risk and performance are monitored on an ongoing basis.

For more information on the Endowment, please see the “Quick Links” above

 

Cash Operating Fund

The Cash Operating Fund is the primary working capital vehicle for the state-wide University system. It operates according to State statute and University investment policy with regard to investable assets, maturity, and credit quality. To date, the Fund has invested in a variety of instruments including commercial paper, certificates of deposit, various U.S. Government guaranteed securities, and repurchase agreements for obligations of the United States or its agencies. In addition, the Fund can participate in the Local Government Investment Pool (LGIP) of the State of Tennessee.