University of Virginia Library

ATTACHMENT A

THE UNIVERSITY OF VIRGINIA IN VESTMENT MANAGEMENT COMPANY
INTERNALLY-MANAGED FUNDS

FUND OUTLINE

CURRENT FUNDS

Return Objectives:

• 1) Fixed Income Pool — To provide the maximum current income consistent with the need for safety and liquidity.
• 2) Equity Pool — to provide long term returns higher than those available to investors in high grade fixed income securities.

Benchmarks:

• 1) Fixed Income Pool — 60% 91-Day T-Bills/40% Merrill Lynch Governments, U.S. Treasury Short-Term Index (1.2.99 years).
• 2) Equity Pool — Fixed Income Pool Benchmark + 3% per annum.

Investment Philosophy:

• 1) Fixed Income Pool — Active portfolio management and trading will be employed to achieve the return objectives. Strict quality standards have been established to minimize credit risk. In order to protect against or capitalize on sharp fluctuations in interest rates, trading may be substantial at times. Emphasis will be placed on short-term, highly marketable securities to insure adequate liquidity.
• 2) Equity Pool — Invest in a portfolio of equity securities or investment vehicles that can be expected to produce equity-like returns and risk.

Investment Vehicles:

The fund may invest in the following instruments:

• 1) Fixed Income Pool — Any and all instruments specified in the Investment of Public Funds Act. The Act governs the investment of operating funds by entities of the Commonwealth of Virginia. In addition, any endowment income or gift funds not invested within the Equity Pool may be invested consistent with either the Pooled Endowment Fund guidelines or the Investment of Public Funds Act.
  
  Subject to the approval of the Executive Vice President and Chief Financial Officer internal loans to University Departments and Activities to be repaid from operating and capital funds budgeted for this purpose. No more than a total of $10 million shall be invested in internal loans at any one time.


• 2) Equity Pool — Any investment strategy or investment manager approved by the UVIMCO Board.