The Statement of Responsible Investment Principles (the “Principles”) sets out the high-level investment principles of the Cambridge University Endowment Fund (“CUEF” or the “Fund”) with regard to Responsible Investment.
The Principles are set by the Cambridge University Endowment Trustee Body (the “Trustee” or “CUETB”) in consultation with unitholders, University of Cambridge Investment Management (“UCIM”) and the Investment Advisory Board.
The Cambridge University Endowment Trustee Body was established in June 2022 to represent the University as trustee of the CUEF and the interests of all investors. UCIM has been appointed by the CUETB as the manager of the CUEF.
The CUETB defines Responsible Investment as “an approach to investment that explicitly acknowledges the relevance to the Fund of environmental, social and governance factors. It recognises that the generation of attractive long-term investment returns is dependent on stable, well-functioning and well-governed social, environmental and economic systems, including financial markets”.
The management of the CUEF should reflect the interests and values of the unitholders across all areas of investment activity, insofar as such considerations are consistent with its Investment Objectives.
In this context, the Fund has four Principles:
1. Invest for the long term: As the University of Cambridge is a perpetual institution, the CUEF should consider the long-term implications of all relevant investment decisions.
2. Promote good governance: Clear, consistent, and rigorous governance structures and processes are essential to optimal decision-making. This approach applies equally to the CUEF and its Investment Manager, as well as its underlying investments.
3. Align with net zero: Climate Change is the most pressing problem facing humanity, necessitating a transition to an economic system with net zero greenhouse gas emissions. Positioning the CUEF to prosper in a future net zero economy is consistent with meeting its long-term risk-adjusted investment return objectives.
4. Champion diverse teams: Diversity of thought leads to more effective decision-making for society and the environment, as well as driving better financial performance.