Investment objective
Our objective in managing the Fund is to generate an investment return in excess of the distribution rate over the long term.
What is UWC Endowment Fund?
The UWC Endowment Fund (‘the Fund’) manages charitable endowments on behalf of many UWC schools and colleges, the UWC International Office, and various UWC national committees.
We partner with exceptional external investment managers across the asset classes to manage endowments given to the UWC movement for the purpose of providing scholarships. Our mission is to grow the number of scholarships available to talented but financially-constrained students by generating superior investment returns with appropriate levels of risk.
We manage the endowments with a long-term perspective. A portion of the Fund is distributed each year to our investors to finance scholarships, while we seek to ensure that the value of the underlying endowments is protected into perpetuity.
Guiding principles
In everything we do, and in the way we invest, we are guided by the principles of integrity, frugality and sustainability. We believe in making our investors our number one priority, in playing by the book and doing good for society, and see every basis point saved in costs as another scholarship earned. We also believe in the investment strategy of seeking value, and letting that value compound over time, as a means of generating excess returns over time. We maintain a long-term mindset when managing the portfolio and strive to develop mutually-beneficial partnerships with our carefully vetted group of external investment managers.
Performance
The Fund’s net asset value and investment returns are published semi-annually.
The Fund’s launch date was 15 January, 2024, and its first report was published in July 2024.
Managing the portfolio
We believe that, fundamental research and active investment management generate superior returns given the level of risk.
We seek out managers with a clear investment philosophy, a cost-effective investment strategy, and a distinctive and repeatable investment process. We insist on strong governance and the alignment of interests with investors, and seek evidence of creativity, curiosity and a humble attitude. We also require our managers to have well-integrated ESG policies, robust operations, and a long-term focus that prioritises performance over asset gathering.
We monitor the portfolio against our strict investment criteria on an ongoing basis. From time to time we may also invest directly in public or private markets, or prioritise liquidity in the portfolio.
We view diversification as a fundamental asset allocation consideration and pay close attention to balancing the portfolio across asset classes, strategies and geographies. We also require regular reporting of our managers’ active positions to help us control portfolio risk, including potential concentration in a specific asset, asset class or currency. The portfolio is monitored to ensure adequate liquidity to fund annual distributions.
ESG
Managing capital on a long-term perspective means that ESG is an integral part of our decision making and portfolio monitoring processes.
In order to maximise returns and contain risk, we strive to understand the role ESG plays in external managers’ strategy, as well as their targets for carbon neutrality and willingness to engage with us on ESG-related matters. We will monitor them for any changes of strategy or positioning, and for any emerging new threats or opportunities. We do not believe in limiting our external managers’ investment universe, but will actively encourage them towards sustainability and transparent reporting.
Our aim is to achieve carbon neutrality by 2050, both in our own operations and within the portfolio. We are committed to providing regular, transparent reporting on our progress towards that goal.
UWC Endowment Management (UWCEM) is authorised and regulated in the UK by the Financial Conduct Authority with firm reference number 984693. Incorporated in England and Wales: company number 14298175. Registered address: 3rd Floor 55 New Oxford Street, London, United Kingdom, WC1A 1BS.
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