9.3 Short-Term Investment Management

Investment Objective

The investment policy for short-term investments uses a three-tier investment structure designed to protect principal while maintaining liquidity with a secondary focus on optimizing investment yield. 

Asset Allocation

To achieve the investment objective, the short-term investments may be moved among a three-tier investment structure, while always maintaining cash sufficient for annual operations. 

1. The primary investment objective of tier one investments is to be able to meet the daily operational needs of the Foundation at an optimal yield while protecting the safety of the principal at an appropriate investment risk.

Tier 1 will be maintained in cash and cash equivalents to fund one year of operating expenses of the Foundation.  These assets will not be put at investment risk.

2. The investment objective of Tier 2 is to optimize yield and replenish Tier 1 funds as they become due.   This is done by extending maturities beyond a twelve-month investment horizon at low to moderate levels of risk while protecting the safety of the principal.

3. Tier 3 assets will be invested in the UGA Foundation long-term investment pool on a commingled basis with a primary goal of capital appreciation.

Last Updated on June 24, 2019