UCIM operates an unconstrained, global, multi-asset portfolio. UCIM’s strategy is to invest through what we believe are best-in-class, specialist, third-party fund managers, to access asset classes and geographies that will outperform passive investments over time. The Fund is diversified over five broad asset classes: Public Equity, Private Equity, Absolute Return and Credit, Real Assets, and Fixed Interest/Cash.
The strategy aims to meet the CUEF's long-term objective to achieve returns of 5% in excess of the Consumer Price Index (“CPI”), net of fees; and to fund distributions to investors of approximately 4% of the net asset value of the Endowment per year.
We identify third-party fund managers based on the following criteria:
(i) A repeatable source of investment insight or “edge” that can deliver investment out-performance over the long-term;
(ii) A disciplined and consistent investment process;
(iii) A team that is sufficiently well-resourced, experienced and talented to deliver against (i) and (ii);
(iv) Terms which are aligned with the interests of the CUEF and its investors;
(v) A willingness to work with UCIM to deliver the CUEF’s sustainability goals and;
(vi) The highest possible levels of personal integrity.
The chart below shows the evolution in asset allocation from 2018 to 2022 - a reduction in Public Equity allocation in favour of increases to Private Equity and Absolute Return and Credit, a driver of the CUEF's performance since 2020.
The Investment Advisory Board provides feedback on investment strategy and portfolio management to the Chief Investment Officer and investment team.