The University’s mission is “to contribute to society through the pursuit of education, learning, and research at the highest international levels of excellence”. All the resources of the University are ultimately applied to this charitable purpose. Its core values include freedom of thought and expression and freedom from discrimination, as well as concern for sustainability and the relationship with the environment.
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 CUETB was established by the University of Cambridge on 3rd June 2022 and is comprised of six members: three members appointed by the Council; two members appointed by the unitholders; and one person independent of the University and other institutions participating in the CUEF who has significant experience in Responsible Investment.
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”.
UCIM has been appointed by the Trustee as the manager of the CUEF. UCIM’s mission is to serve the University, Colleges and Trusts by delivering world class, sustainable investment performance over the long-term.
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.
The Trustee believes that the Fund’s assets should be invested responsibly in a manner that is consistent with the Principles set out above. When appointing and monitoring the Investment Manager of the Fund the Trustee takes the Principles into account and expects the Investment Manager to have a framework in place to actively and consistently consider negative and positive impacts on society and the environment across all investment decisions.
As manager of the CUEF, University of Cambridge Investment Management (“UCIM”), is required to take into consideration the Principles when setting its Investment Strategy and has committed to ensuring the CUEF is positioned to prosper in a future net zero economy.
Implementation of the Responsible Investment Principles is set out in detail in UCIM's Responsible Investment Policy, available to download on the link below.
UCIM's implementation of the Cambridge University Endowment Trustee Body's Responsible Investment Principles
Read UCIM's RI Policy