Investment Office
The Investment Office manages assets that support the UT System’s long-term financial health, including Charitable Remainder Trusts and the Endowment.
Investment Partners
The UT System partners with Cambridge Associates for management of the University’s investment portfolios.
Charitable Remainder Trusts
A charitable remainder trust (CRT) provides financial benefits to a named beneficiary while also making a lasting gift to the UT System. The first CRT, created in 1965, benefitted the university’s Library Endowment. Today, trust administration, investment management and tax reporting are handled by BNY Mellon Wealth Management.
Endowment Overview
In 1954, the University of Tennessee began pooling endowed gifts into a single, comingled investment vehicle, the Endowment. This allowed for closer supervision of the assets and enabled all endowed funds to benefit from a broadly diversified portfolio. In 1981, the university expanded the investment mandate to include non-traditional assets and in 1993, formally adopted a “total return” approach to managing the portfolio.
The Endowment follows a long-term investment strategy. Its primary goal is to achieve an annualized return that exceeds inflation and spending, while preserving capital through a full market cycle. The university works with an external consultant to identify investment managers with a proven strategy, strong investment culture, and emphasis on risk management. This approach enables the university to maintain its strategic focus and avoid the distractions of short-term market trends. Risk and performance are monitored on an ongoing basis under an active governance structure.
The Endowment invests across a wide range of asset classes, and over any time period, its return may differ significantly from popular indices such as the S&P 500, individual mutual funds, and peers.
