How we manage our investment funds
We work with our appointed Outsourced Chief Investment Officer (OCIO) who manages our long-term and mid-term investment portfolios on our behalf. The University’s Treasury Manager manages our Liquidity Portfolio.
These portfolios are managed for different purposes and timeframes. You can read more about where investment money comes from and how we currently invest on the next pages.
Appointment of outsourced chief investment officer (OCIO)
In the academic year 2023/24, we appointed J.P. Morgan as our OCIO, with a clear priority to invest on our behalf while implementing our Responsible Investment Policy.
This followed a rigorous governance and procurement process. The first step was to hire a specialist procurement adviser to support the process. After shortlisting potential partners, our Chief Financial Officer and members of our Strategy, Planning and Resources Committee completed the final part of the selection process on behalf of the University’s Council.
How we work with our OCIO
We instruct our OCIO to invest money that we want to hold for the medium or long term. Much of this money is invested through pooled funds alongside money from other investors. This is also known as indirect investment.
The OCIO manages these investments in line with the University’s investment mandate and Responsible Investment Policy. This includes manager selection, ESG screening, monitoring and regular reporting to the University’s Investment Sub-Committee.
The OCIO uses a screening service provided by Morgan Stanley Capital International (MSCI) to support its review of pooled funds. This helps the Investment Sub-Committee review performance, ask questions and consider whether any further action is needed.
Portfolio Types
Long Term Investment Portfolio
Long Term Investment Portfolio
Money in this portfolio is mainly generated from endowments gifted from alumni and donors. We can’t spend the original money given to permanent endowments, which is most of the endowment fund — we can only use the returns it generates. That’s why we invest the endowment fund for the long term.
Mid Term and Liquidity Portfolios
Mid Term and Liquidity Portfolios
Cash held in these portfolios comes from things like student fee income and research grants. We do not invest student fee income in stocks and shares of companies. The portfolios invest in funds or products that let us access money quickly, in case we need it for operating costs or capital investment.
For current values and quarterly portfolio data, see how we currently invest.
Direct and Indirect Investments
Direct Investments
Direct Investments
Direct investment is when an investor buys an asset, like a stock or share, bond, or property, and manages it themselves.
Indirect Investment
Indirect Investment
Indirect investment is when an investor puts money into a fund, like a mutual fund, exchange-traded fund (ETF) or managed portfolio, which is managed by someone else. The investor owns part of the fund, rather than choosing each asset individually, and the risks are shared with other investors.