All investment activity is centralized under the Office of the Treasurer, which is just one of three levels of oversight. The first level is the Finance and Administration Committee of the University’s Board of Trustees. The Committee recommends investment policies to the full Board and reviews investments and estimated performance quarterly. Second is the Investment Advisory Committee, which was formed in 1982 and is tasked with advising the Treasurer on the appropriate investment strategy, risk tolerance, asset allocation, and the spending rate. In addition, this Committee evaluates the investment consultant and monitors performance on a regular basis. It is comprised of University staff, ex-officio members, and members appointed by the President. Finally, the Treasurer, through the Investment Office, oversees the day to day management of the investment programs. This includes coordinating with outside managers and consultants, reporting, and research.
The primary goal of the Consolidated Investment Pool is to generate a sustainable stream of distributions to support the University’s programs. Mindful of this objective, the Investment Committee may consider the extent to which an investment is consistent with the goals of the University of Tennessee. Where appropriate, the University may seek to influence or avoid those investments that conflict with those goals. Action will only be taken, however, if the Investment Committee believes it would not cause harm to the investment objectives of the Pool, impair performance, or place a material burden on current resources.