University of Bristol
Endowment Investment Policy
November 2021
Introduction
1. The University of Bristol Acts 1960 and 1974 provide for the pooling of the investment of
funds and the creation of a Trustee Securities Pool and a General Pool. The value of each
pool is divided into investment units. The income of the pools is apportioned among the
various endowment and other funds in proportion to the numbers of unit to which each
fund is entitled.
2. The assets held by the University’s endowment funds should be split into an investment
portfolio, in order to generate income and capital growth, and cash deposits held within
the University’s general bank accounts, to maintain liquidity.
Endowment Rules
3. New endowments received by the University are used to purchase units in the fund at a
price equal to the current value of a fund unit; that is the total market value of the fund
divided by the number of units. Income shall then be added to each fund in proportion to
its holding of fund units.
4. Where an endowment is a permanent endowment, only the income generated by the
capital may be expended; the capital itself may not be spent. Where an endowment is an
expendable endowment, the capital may be spent in accordance with the terms of the
endowment. Where the capital portion of an expendable endowment is spent then the
number of units held by that endowment fund should be decreased proportionately.
5. If any part of the capital portion of a permanent endowment is expended, notwithstanding
the requirement that only the current portion of such an endowment may be spent, then
expenditure on that fund should be held in abeyance until the accumulating income
received by the fund is sufficient to make good the deficit.
Investment objectives
6. The University’s endowment investments are held for capital growth. The objective of the
endowment investments is that the market value should grow at least in line with inflation.
7. The University’s endowment investments are also held to generate an income sufficient
to fund charitable activities, as defined in terms of the respective endowments.
8. The amount of cash held by the University’s endowment should be reviewed annually by
the trustees. The level of cash held within the endowment should be sufficient to cover
six months’ worth of expenditure incurred by the endowment funds.
9. Endowment investment decisions should aim to optimise the yield of the endowment
investments within the context of the University’s risk appetite. For this purpose the
University’s risk appetite is Moderate1.
1 The following definition serve as guidance on the University’s risk appetite:
