Unitized Endowment Pool - UEP

AAA

DEFINITION of 'Unitized Endowment Pool - UEP'

A form of endowment investing that has mechanics similar to that of a mutual fund. A unitized endowment pool allows multiple endowments to invest in the same pool of assets.

Each endowment owns individual units in the unitized investment pool, and the units are generally valued monthly. New endowments entering the pool can buy in by receiving units in the pool that are valued as of the buy-in date.

INVESTOPEDIA EXPLAINS 'Unitized Endowment Pool - UEP'

A Unitized Endowment Pool (UEP) can be thought of as a mutual fund on a bigger scale. While even small endowments likely have a substantial amount of cash to invest, it may be beneficial to pool together with other endowments for diversification. Units act like shares in a mutual fund, and also serve to clearly segregate each endowment's share in the pool.

For example, a UEP with market value of $100 million may have 100,000 units that are worth $1,000 each. An endowment with $20,000 can buy 20 units of the pool.

RELATED TERMS
  1. Endowment Fund

    An investment fund set up by an institution in which regular ...
  2. Private Foundation

    A charitable organization that, while serving a good cause, does ...
  3. Prospectus

    A formal legal document, which is required by and filed with ...
  4. Endowment

    A financial asset donation made to a non-profit group or institution ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Historic Pricing

    A method for calculating the value of an asset using the last ...
Related Articles
  1. Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

    Learn how to evaluate mutual funds and find the right one for you.
  2. Mutual Funds & ETFs

    Published Mutual Fund Returns Not Always What They Appear

    Survivorship bias erases substandard performers, distorting overall mutual fund returns.
  3. Retirement

    A Brief History Of The Mutual Fund

    This popular investment vehicle has seen its share of ups and downs, successes and scandals. Read all about it!
  4. Investing

    How do university endowments work?

    Endowments represent money or other financial assets that are donated to universities or colleges. The sole intention of the endowment is to invest it, so that the total asset value will yield ...
  5. Investing

    What Happened To Obama’s Amnesty Bill?

    The sweeping Republican majorities were supposed to trigger change, but now they are preparing to embrace the Obama immigration policy.
  6. Fundamental Analysis

    What is the difference between the acid test ratio and working capital ratio?

    Using liquidity ratios to determine the financial stability of a company is an important tool to accounting professionals and investors.
  7. Fundamental Analysis

    Do you always have to consider intrinsic value when purchasing a stock? Why or why not?

    Take a deeper look at why value investors consider a stock's intrinsic value an important consideration before picking a company to invest in.
  8. Fundamental Analysis

    What are some examples of return on investment capital?

    Read about some basic examples of return on investment capital for publicly traded companies and companies that have a handful of investors.
  9. Bonds & Fixed Income

    What is the difference between the yield of stock and the yield of a bond?

    Explore and understand the various meanings of the investment term "yield" as it is applied to equity investments and bond investments.
  10. Investing Basics

    What is the difference between a REIT and a real estate fund?

    A real estate fund invests in securities offered by public real estate properties directly or indirectly through Real Estate Investment Trusts (REITs).

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center